Ten EU countries, including Cyprus, call for a review of fuel tax

Ten European Union countries, including Cyprus, have called for a review of the new carbon levy on fuel (ETS2), which is scheduled to be introduced from 2028. Italy, Poland, Bulgaria, the Czech Republic, Estonia, Greece, Hungary, Romania and Slovakia also signed the joint statement.

The states believe that in the current economic and geopolitical conditions, Europeans should not face additional climate levies. In their view, the ETS2 mechanism must be reconsidered as part of the forthcoming reform of the European emissions trading system (ETS).

The European Commission intends to present updated ETS rules as early as Friday. Brussels had previously already postponed the introduction of the new levy by one year amid concerns that it would drive up fuel and heating prices.

Supporters of ETS2, including Germany and Sweden, say the mechanism will accelerate the transition to environmentally friendly transport and heating systems, while the funds raised will help finance green projects and support for the population.

In addition, the ten countries are proposing to preserve more free CO₂ emission allowances for European industry without additional conditions. If their demands are not taken into account, this group of countries has enough votes to block separate changes as part of the ETS reform discussions.