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Italy calls for suspension of EU carbon market

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Italy calls for suspension of EU carbon market

Italy’s Industry minister Adolfo Urso urged the European Union to suspend its carbon market until the bloc presents a revised proposal due this summer, citing the hardship faced by European businesses because of high power and carbon costs.

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The Emissions Trading System (ETS) is the bloc’s mechanism for making companies pay for their pollution, with the dual aim of reducing emissions and encouraging industry to invest in more sustainable alternatives.

In Europe, the ETS currently covers heavy industries, power plants as well as airlines and shipping. Additional sectors such as international aviation, landfills and incinerators will be included in the upcoming review by the European Commission.

But Urso said the ETS is to blame for Europe’s competitiveness problems because the bloc’s climate policy tool has a “perverse effect” and is preventing European companies from competing with China and the United States.

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“We are all aware that the mechanism of the ETS, as it is currently drafted, is only a tax, a tariff on the energy-intensive companies that struggle to remain competitive,” Urso told reporters on the sidelines of a gathering of industry ministers in Brussels on Thursday. “It is necessary – we are all aware – to review it in a substantive way.”

“To do this properly, it is necessary to suspend the ETS mechanism while awaiting a reform that must necessarily be comprehensive,” Urso added.

Urso added: “If we are in the face of the collapse of the European chemical industry and the crisis of European ideology, we cannot wait for the time of negotiations within the European Union to find a solution.”

The Italian minister said that in the meantime, “we are looking for an effective organic solution,” adding that he will ask the European Commission to suspend the ETS.

Italy’s plea joins that of industry leaders who have recently asked the EU to urgently act to reduce energy and carbon costs. German Chancellor Friedrich Merz has recently touted the same idea, driving down carbon market prices, only to backtrack on it a few days later.

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Nordic business leaders back ETS

In a letter sent to Commission President Ursula von der Leyen and EU Climate Commissioner Wopke Hoekstra, a group of Nordic industry associations representing Finland, Sweden, Denmark and Norway urged the EU to maintain the ETS, highlighting its role as a key European advantage and as a source of certainty for investments in clean technologies.

They backed the ETS as a “market-based and technology-neutral policy instrument” that helps reduce carbon dioxide emissions.

“Reforming the system must be done carefully, because it has such a significant impact on the economy and competitiveness, in addition to the climate,” the Nordic leaders suggested.

The four industry associations argued that future prosperity in the EU is linked to the ETS since its revenues can bring about decisive investments in clean energy production, critical infrastructure, electrification, and ultimately the decarbonisation of industry.

“Efficient use of the EU’s own resources is central to achieving almost all the Union’s major strategic aims, and these efforts require reliable access to both public and private financing,” reads the letter dated 23 February and seen by Euronews.

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Since its inception in 2005, the ETS has slashed emissions by 39%, with revenues exceeding €260 billion, according to the EU data.

Hindering technological innovation

Carlo Carraro, President Emeritus and Professor of Economics at Ca’ Foscari University of Venice, criticised the Italian government’s stance on the ETS, saying the attack risks weakening a policy that has proven effective in reducing emissions in regulated sectors.

“Innovation and competitiveness are now inextricably linked to decarbonisation,” Carraro said. “Hindering the transition exposes businesses to increasing technological and financial risks and makes the country less competitive”.

Similar thoughts were voiced by Chiara di Mambro, Director of Strategy Italy and Europe at the environmental think tank ECCO.

“Suspending the ETS as proposed today or subsidising gas, as envisaged in the Government’s recent decree, would move Italy in the opposite direction (higher energy prices): weakening the price signal, increasing market uncertainty, and ultimately delaying the transition away from expensive fossil fuels,” di Mambro said.

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Italy is already on track to overhaul its electricity market, which would strip carbon costs from power bills. Instead, Di Mambro suggests using fiscal revenues or dividends from energy companies to reduce the burden of levies on electricity bills.

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Video: Nowhere Feels Safe As Israel Strikes Heart of Beirut

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Video: Nowhere Feels Safe As Israel Strikes Heart of Beirut

new video loaded: Nowhere Feels Safe As Israel Strikes Heart of Beirut

When a residential building in downtown Beirut was destroyed by an Israeli airstrike, Samira Osseili fled with her family in the middle of the night. She’s now living in fear with 12 other relatives in her small apartment, knowing that another strike could come at any moment.

By Simona Foltyn, Adrian Hartrick, Michael Anthony Adams and Caroline Kim

March 26, 2026

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US troops brace for ‘hit-and-run’ guerilla attacks as 82nd Airborne deploys to Iran, military analyst warns

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US troops brace for ‘hit-and-run’ guerilla attacks as 82nd Airborne deploys to Iran, military analyst warns

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Iran could significantly increase U.S. casualties if its elite military and proxy forces shift to guerrilla-style hit-and-run attacks in the region, a leading military analyst has warned.

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Michael Eisenstadt of the Washington Institute for Near East Policy spoke as the Pentagon moved elements of the Army’s 82nd Airborne Division into the Middle East amid a new escalation in the conflict, according to reports.

“Iran has large infantry units in its military that are equivalent to the brigade combat team of the 82nd Airborne,” Eisenstadt, a former U.S. Army Reserve officer, told Fox News Digital.

“The 82nd Force is too small to cause significant harm to Iran, but it is large enough to be vulnerable to Iranian strikes, and this would enable Iran to significantly increase U.S. casualties,” he said.

HEGSETH WARNS ‘MORE CASUALTIES’ EXPECTED IN OPERATION EPIC FURY AGAINST IRAN

The 82nd Airborne Division deployment to the Middle East is intended to pressure Iran into accepting U.S. ceasefire terms, military analyst Michael Eisenstadt says. (Sarah Blake Morgan/AP Photo)

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Eisenstadt, who has worked as a U.S. government military analyst, claimed that, even if major conventional operations begin to wind down in the Middle East region, the danger may only evolve rather than disappear.

“We could see an end to major combat operations, with activity shifting to guerrilla-style hit-and-run attacks in the Gulf and other gray-zone activities by Iran,” he said.

“Think of the aftermath of the 1991 Gulf War with Iraq, in which we had to contain the Iraqis for a decade after a very successful war.”

US COULD TAKE IRAN’S MAIN OIL EXPORT HUB ‘AT A TIME OF OUR CHOOSING,’ JACK KEANE SAYS

Naval units from Iran and Russia simulate the rescue of a hijacked vessel during joint drills, Feb. 19, at the Port of Bandar Abbas in Hormozgan, Iran. (Iranian Army/Handout/Anadolu via Getty Images)

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Fox News chief national security correspondent Jennifer Griffin reported Wednesday that the U.S. has ordered the deployment of an additional 82nd Airborne forces to the region.

The contingent is expected to include Maj. Gen. Brandon R. Tegtmeier, the division commander, elements of his headquarters staff, and infantry battalions from the division’s Immediate Response Force. 

Officials also indicated that the total number of troops ultimately sent could still change.

Eisenstadt said this new deployment is intended to increase pressure on Tehran as the U.S. pushes for new ceasefire terms, set in place by President Donald Trump.

WINNING THE BATTLES, LOSING THE WAR? AMERICA MUST DEFINE THE ENDGAME IN IRAN

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President Donald Trump speaks with the media before boarding Air Force One, Monday, at Palm Beach International Airport in West Palm Beach, Fla. (Mark Schiefelbein/AP Photo)

“This deployment is intended to create leverage over Iran and pressure it to accept U.S. terms for a ceasefire agreement. It would also create military options if Iran rejects those terms,” he said.

In that scenario, he said, the 82nd could potentially operate alongside Marine expeditionary units in operations to seize and hold terrain, including Kharg Island, located roughly 20 miles off Iran’s Gulf coast.

U.S. forces struck military targets there March 13, destroying more than 90 Iranian military sites while deliberately sparing key oil infrastructure, according to multiple reports.

IRAN’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ

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Satellite view of Kharg Island, located in the Persian Gulf off the coast of Iran.  (Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2024)

“The brigade combat team of the 82nd could work with the 11th and 31st MEUs, or independently, to seize and hold terrain — such as Kharg Island,” Eisenstadt said.

“This would provide leverage over Iran by denying it the ability to export oil and helping end the war on terms favorable to the U.S.”

“There are risks involved though, because Iranian units on the mainland could bombard Kharg Island and inflict casualties on U.S. troops there also,” Eisenstadt said.

JACK KEANE WARNS CEASEFIRE WITH IRAN WOULD ‘PLAY RIGHT INTO THEIR HANDS’ AS TRUMP SIGNALS DEAL PROGRESS

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President Donald Trump warned on Saturday that the U.S. could strike Iranian power plants if the Strait of Hormuz is not reopened. (Aaron Schwartz/UPI/Bloomberg via Getty Images; Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2025 via Getty Images)

The latest military buildup comes as the conflict that began with Operation Epic Fury on Feb. 28, has also centered on the Strait of Hormuz, with Iran restricting access.

“The 82nd deployment is intended to increase psychological pressure on Iran and support efforts to reopen the Strait of Hormuz so it can once again be used by all countries,” Eisenstadt explained.

The 82nd Airborne is one of the U.S. military’s premier rapid-response units, trained to parachute into hostile or contested territory to secure key ground and airfields.

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Portions of the division have also spent recent days at the Joint Readiness Training Center, sharpening infiltration, surveillance, combat and resupply skills, Axios reported.

“Iranian military officials have welcomed news of the dispatch of these units to the Gulf because it potentially creates options for them to impose costs on the U.S.,” Eisenstadt said.

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Escalation in the Middle East – Not Europe’s war? MEPs in the Ring

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Escalation in the Middle East – Not Europe’s war? MEPs in the Ring

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Imagine a former five-star army general in the same room as an anti-war activist? That is what we witness on this latest edition of The Ring, Euronews’ weekly debate show.

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Riho Terras, an Estonian general and centre-right MEP, went face-to-face with far-left Turkish-born German MEP Özlem Demirel on the role of the EU in the ongoing war in the Middle East.

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As the conflict enters its fourth week, EU leaders have called for “de-escalation, the protection of civilians, and restraint,” while avoiding direct involvement. But the question of whether Brussels should take a stronger stance has exposed deep divisions.

“We know from history that military means and wars never brought democracy to this region,” Demirel said, adding starkly: “Bombs fall, the stock markets rise, people die.”

Riho Terras disagreed and took a more security-focused line, defending the need for military strength in global politics. “Nobody listens to somebody who does not have military means,” he argued, stressing that diplomacy alone is insufficient without power behind it.

This episode of The Ring is anchored by Méabh Mc Mahon, produced by Luis Albertos and Amaia Echevarria, and edited by Vassilis Glynos.

Watch The Ring on Euronews TV or in the player above and send us your views by writing to thering@euronews.com

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