Spain's Prime Minister, Pedro Sánchez, has come out in strong support of the European Union's Emissions Trading System (ETS), which is pivotal for the bloc's climate policy. His defense comes as a response to increasing scrutiny and criticism from other European leaders who have begun to question the effectiveness and future of the ETS. In a document seen by Politico, Spain calls for the EU to uphold its commitment to the Green Transition and to resist any efforts aimed at weakening the emissions trading scheme.

The document outlines Spain's position as it participates in discussions on economic competitiveness within the EU, emphasizing that undermining the ETS could jeopardize the bloc's climate goals. The ETS requires significant emitters, like power plants and energy-intensive industries, to purchase carbon allowances for their CO2 emissions, effectively putting a price on carbon and incentivizing lower emissions. The European Commission is set to release a review of the carbon market's operation, which was established 20 years ago, along with recommendations for its reform.

Sánchez's message was communicated to António Costa, the permanent president of the European Council, just as Italy launched a sharp attack on the ETS. The defense of the ETS by Spain suggests a growing divide among EU member states over how to handle emissions trading in the face of climate change. This debate is crucial as it not only affects environmental policies but also the future of energy markets and economic competitiveness across the EU.