Europe's Emissions Trading System faces open rebellion from ten member states.
Led by Italy, Poland, and Austria, critics argue the "polluter pays" model threatens industrial survival amidst soaring energy costs.
While the scheme slashed greenhouse gas output by 39 percent since 2005, Italian Industry Minister Adolfo Urso labels it a tax with perverse effects. The chemical sector alone cites 100 facility closures and 75,000 job losses.
Now, Rome demands a total suspension. Other allies seek extended free allowances beyond 2034. With tensions linked to the war in Iran, the energy transition has transformed from a climate goal into a strategic security battle.