EU Environment and Climate reposted this
Dear friends, colleagues, Against the backdrop of media reports of mosquitos being found in Iceland for the first time, EU leaders met yesterday to tackle defence and security, competitiveness and autonomy, and the green and digital transition. The European Council conclusions pave the way for Environment Ministers on 4 November to agree the EU’s intermediate 2040 climate target. It was fitting that climate ambition was discussed alongside competitiveness and security; they belong together and should reinforce each other. Welcoming Monday’s letter from the Commission President on climate and competitiveness, leaders call on the Commission to develop the enabling conditions that help industry and citizens achieve our climate goals. From now on, climate policy is industry policy. And social policy. The 2026 Commission work programme, “Europe's independence moment”, sets the tone for the year ahead. Those expecting a scaling-down of climate action should think again. Seeing, also there, how climate action is tightly linked to competitiveness and security, we’ll be in high demand. We will continue working closely with Parliament and Council to reach agreement as soon as possible. Next steps involve preparations for the 4 November Environment Council and subsequent Parliament votes. On Tuesday, Council adopted conclusions on EU preparations for COP30, stressing urgent global action: strengthening global mitigation ambition, progress on adaptation goals, enhanced climate finance mobilisation, and boosting the energy transition. Also, the European Parliament adopted its resolution setting out its position and priorities for the COP this week. The European stars are aligning for the EU to go well equipped to Belem. At Tuesday’s Environment Council, Commissioner Wopke Hoekstra explained how we will ensure a stable start for Europe’s new emission trading system for buildings and road transport. We will soon table a package of proposals to avoid future carbon-price spikes and volatility, and to help accelerate investments ahead of the launch of the ETS2 market in 2027. ESMA’s 2025 Market Report finds the EU carbon market functioning smoothly, with no significant integrity or transparency issues. Emission allowance auctions and secondary markets trading dynamics remain largely unchanged, with the market organised in a way that facilitates the flow of allowances from financial intermediaries to non-financial firms with compliance obligations. EU policy driving investment and innovation is evident from the 2025 annual knowledge sharing report of the Innovation Fund. The report offers valuable lessons from real projects shaping Europe’s clean transition and offers practical insights for advancing low-carbon innovation. By end-2024, the Fund supported 120 projects for a total of €7.1 billion euro support. Seeing the high oversubscription with excellent proposals, we only wish the Innovation Fund had more firepower. Enjoy the weekend, Kurt