Six EU members – the Czech Republic, Bulgaria, Poland, Romania, Greece and Slovakia – have pressed the European Commission to protect their heavy industry from rising carbon costs. In a letter seen by the FT, they asked for more free emission permits under the bloc’s emissions‑trading system, arguing that the energy shock and geopolitical tensions have made current costs unsustainable. They warn factories could shut down.

Member states claim mid‑ and lower‑income economies bear the brunt of soaring energy prices, so they seek “additional free allocation” for firms that present verifiable decarbonisation plans before 2030. The commission’s latest proposal adds €4bn in free allowances for 2026‑30 but cuts allocations for heat and fuel sectors by half, a move the six countries say would double effective carbon charges.

The push threatens to reopen ETS legislation, a politically fraught process that could dilute Europe’s 2050 climate target. While northern and western states favor a tighter market to drive green investment, the eastern and southern bloc risks losing competitiveness if carbon costs rise sharply. A swift compromise appears necessary to avoid revenue shortfalls for national budgets.