From:Department of Climate, Energy and the Environment

Progressing this revision is a priority of the Irish EU Presidency

Minister for Climate, Energy and the Environment Darragh O’Brien has today (Friday, 17 July) welcomed the publication of the European Commission’s plans for the review of the EU Emissions Trading System Directive (EU ETS1).Urgently completing the ETS review is a priority for European leaders, the European Parliament and the European Commission in the One Europe, One Market Roadmap. This has been identified as a priority of the Irish EU Presidency and is key to ensuring the EU’s competitiveness.

The Minister welcomed the proposal to amend the cap-and-trade system that has seen emissions in scope reduce by 50% since its inception in 2005.

"The EU is a global leader in this space, with the EU ETS [Emissions Trading System] being replicated in jurisdictions around the world. It has proved agile through multiple reforms, adapting to increasing ambition and changing global contexts, and this is simply the latest iteration."

Proposed revisions to the EU ETS1 focus on market stabilisation, and include amending the trajectory for industry towards decarbonisation, and broadening the scope to include certain aviation and maritime emissions. The plans also include the addition of carbon removals, particularly for hard-to-abate sectors, and the use of international carbon credits.

Following discussions at official level, Minister O’Brien will chair discussions on the review at the Environment (ENVI) Council, with the aim of reaching a General Approach at the December Environment Council in Brussels.

"Reviewing our decarbonisation and competitiveness framework will be vital to achieve our climate targets and to secure the prosperity of our industries. Changes will be difficult but necessary. We will be honest brokers and ensure all Member States have their voices heard on a system that has proven vital for the decarbonisation and competitiveness of EU industry."

Official discussions will commence on Monday, 20 July, in Brussels.

The related European Commission press release (17 July 2026) can be seen at:Commission boosts Europe's competitiveness, decarbonisation and independence.

Ireland’s Presidency of the Council of the European Union

Ireland has taken on one of the European Union’s most influential roles – having now assumed the Presidency of the Council of the European Union (from 1 July to 31 December 2026).

For the next six months, Ireland will be at the centre of EU decision‑making, steering complex negotiations that shape laws and policy for around 450 million people. This comes at a challenging time for the EU as Russia’s war in Ukraine continues, migration remains politically sensitive, competitiveness is under pressure, and the demand to meet climate targets is intensifying. Ireland has successfully held the Presidency seven times before, often during periods of significant change. The 2026 term offers another chance to steer the EU, relying on experience and diplomacy, and with a commitment to partnership.