Climate action

The EU emissions trading system (ETS) is the key policy tool for achieving the EU's climate targets. The existing ETS (ETS1) aims to reduce greenhouse gas emissions from industrial and energy installations, aircraft operators and maritime transport by setting a price on carbon through a cap-and-trade system.

The Commission's ETS revision proposal is expected to address several issues, notably the role of carbon dioxide removals, the expansion of the current scope to additional sectors and GHGs not yet covered by the ETS, new rules on how to account for non-permanent carbon capture and utilisation, and the risk of carbon leakage in sectors not covered by the carbon border adjustment mechanism.

This timely opinion examines civil society proposal on how to reform climate governance, including decision-making processes, negotiation frameworks, and the participation and impact of civil society organisations at global climate summits. It also assesses how international climate litigation is shaping climate negotiations and may further influence the governance of the UNFCCC, particularly in the light of the International Court of Justice’s advisory opinion of 23 July 2025.

Growing resource use is driving the triple planetary crisis, pushing the EU beyond planetary boundaries and leaving many Member States off track for the 2030 circular material use target. Demand-side measures and ambitious primary material reduction policies are essential to reverse this trend and strengthen the EU’s strategic autonomy.

This exploratory opinion will feed into the work of the European Commission during the preparations of the Circular Economy Act.

The European Economic and Social Committee emphasizes the urgent need for climate action to prevent the worst impacts of climate change from affecting societies and, ultimately, the EU population, and views the European Climate Law as a key instrument in achieving this goal. CO₂ levels emitted into the atmosphere have continued to rise globally, with a new peak being reached in 2023. The EESC is convinced that the greatest support for climate policy will be established if the overall aim is to achieve the highest greenhouse gas emissions reduction at the lowest socio-economic costs.

EESC opinion NAT/946 Phasing out fossil fuel subsidies while ensuring European competitiveness, mitigating the cost-of-living crisis, and promoting a just transition was adopted at the EESC Plenary: 29-30 April 2025.