The European Union is currently reviewing its Emissions Trading System (EU ETS), one of its key climate policy instruments.

While meeting climate targets and advancing decarbonization remain top priorities, today’s geopolitical and economic developments have also made it essential to strengthen the competitiveness of the European economy, industrial production, and energy security.

The EU’s new strategy for competitiveness and clean industry recognizes that the green transition can only succeed if it is supported by a strong industrial base, affordable energy, investment, and social cohesion.

Against this backdrop, the upcoming revision of the EU ETS is expected to be one of the bloc’s most significant reforms in the coming years.

Greece has joined Italy, Poland, Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Romania, and Slovakia in signing a joint initiative ahead of the ETS review, actively contributing to a more balanced and effective European approach.

Working with the majority of these countries, Greece had already secured a one-year postponement of the ETS2 system during the Extraordinary EU Environment Council meeting on November 4, 2025.

The initiative does not challenge the ETS as the European Union’s primary tool for reducing greenhouse gas emissions.

Instead, it seeks to ensure that the system continues to achieve the EU’s environmental objectives while also addressing new priorities such as competitiveness, energy security, social cohesion, strategic autonomy, and maintaining industrial production within Europe.

Why the ETS Review Matters for Greece

For Greece, the revision is particularly important. The country is steadily advancing its energy transition through investments in renewable energy, electricity interconnections, energy infrastructure, and security of supply.

At the same time, Greece has unique characteristics—including its large number of islands, the strategic importance of its shipping industry, its dependence on imported fuels, and the need to preserve a competitive industrial base—that should be reflected in European policymaking.

Greece’s Seven Priorities

Greece’s position is based on seven key priorities included in the joint proposal:

1. A realistic emissions reduction pathway

The green transition should remain ambitious while also being realistic, allowing industries and energy systems sufficient time to adapt. This would help prevent the loss of industrial activity and jobs from Europe.

2. Protecting the competitiveness of European industry

Effective free allocation of emissions allowances should remain in place until the Carbon Border Adjustment Mechanism (CBAM) has proven effective in practice. This is particularly important for export-oriented Greek industries such as aluminum, cement, and oil refining.

3. Recognizing national differences

The revised ETS should account for differences in national energy mixes, levels of economic development, and country-specific conditions, including island geography and higher transition costs.

4. Ensuring socially fair implementation of ETS2

The new system should protect vulnerable households and maintain public support for the green transition.

5. Greater predictability in the carbon market

A stable and predictable CO₂ price is essential for encouraging investment, lowering energy costs, and strengthening competitiveness.

6. Safeguarding shipping and European ports

The revision should prevent shipping activity from shifting to ports outside the EU, support a global solution through the International Maritime Organization (IMO), and ensure a fairer distribution of ETS revenues generated by the maritime sector.

7. Preserving air connectivity

Changes affecting aviation should take into account the international CORSIA framework while protecting connectivity and tourism.

Balancing Climate Goals and Competitiveness

Greece’s position is clear: climate ambition, economic competitiveness, energy security, and social cohesion are complementary objectives that must be pursued simultaneously.

By joining this joint initiative, Greece aims to help shape a modern and effective EU ETS that continues to reduce emissions while supporting social cohesion, industry, shipping, energy security, and the competitiveness of the European economy.