Tusk Calls for "Philosophy Shift" in EU Carbon Policy

Polish PM Donald Tusk urges EU leaders to maintain free $CO_2$ emission allowances for industry, citing surging energy costs linked to the conflict in Iran.

By: AXL Media

Published: Mar 18, 2026, 11:57 AM EDT

Source: Reuters

Pressure of the Iran Conflict on Energy Prices

Tusk’s appeal comes at a critical juncture as the U.S.-Israeli conflict with Iran continues to unsettle global energy markets. For Poland, where coal generates approximately 50% of electricity, carbon fees account for more than 20% of the total energy bill (compared to the EU average of 11%). The Polish Prime Minister argued that climate policies must remain flexible to prevent industrial collapse and excessive strain on household budgets during this period of geopolitical uncertainty.

The Challenge of ETS2 Reform

The planned EU reform, known as ETS2, is set to impose a price on $CO_2$ emissions for heating and transport fuels starting in 2028. However, Tusk and his allies are pushing for a further delay of this reform. They argue that introducing new taxes on car fuel and home heating, at a time when oil prices are elevated due to Middle East tensions, could trigger mass social unrest and undermine the competitiveness of European industry.

A Tailored Approach for Each Member State

Tusk emphasized the need for a "profound adjustment of philosophy" within Brussels. According to him, the "one-size-fits-all" approach to climate policy is no longer viable. Poland is calling for the EU to recognize the specific characteristics of each country’s energy mix, allowing for a slower and more financially supported transition for nations with a heavy fossil-fuel industrial legacy.