EU Pushes Carbon Pricing at COP30 as Global Pushback and Internal Divisions Deepen

As COP30 in Belém nears its scheduled close, negotiators remain sharply divided on key issues, raising the risk the summit will end with weak commitments or inadequate finance for vulnerable countries. At the centre of the debate is the European Union's drive to export carbon pricing — including its Carbon Border Adjustment Mechanism (CBAM) — as a flagship tool to curb emissions.

Host President Luiz Inácio Lula da Silva warned delegates of a looming "climate apocalypse," saying some states are diverting attention from global warming to security concerns or outright denial. "There will be no energy security in a world on fire," he said, adding that the conflict in Ukraine had set back years of emissions reduction progress. Notably, the United States did not send a delegation to the talks.

The EU has arrived in Belém presenting itself as a diplomatic leader on climate after agreeing tighter bloc-wide targets. Brussels is pressing for stronger global action on mitigation and adaptation, increased climate finance, and a faster transition to a climate-neutral economy while trying to ensure that the transition is socially fair.

Earlier this month the EU adopted a new Nationally Determined Contribution (NDC) range of 66.25–72.5% greenhouse gas reductions by 2035, building on its existing goals of a 55% cut by 2030 and carbon neutrality by 2050. European Commission President Ursula von der Leyen and other officials have urged other countries to develop domestic carbon markets modeled on the EU's emissions trading system (EU ETS), which caps emissions and uses tradable allowances to incentivize low-carbon production.

However, the EU’s Carbon Border Adjustment Mechanism (CBAM) — a levy on imports of carbon‑intensive goods to prevent carbon leakage and preserve the competitiveness of decarbonizing European industry — has become a major flashpoint. Tested since 2023 and set to be fully operational in 2026, CBAM covers products such as steel, aluminium, cement, fertilisers, electricity and hydrogen. Large emitters including China and India, along with several allied countries, are pushing COP30 to adopt language opposing unilateral trade barriers that they say could be protectionist.

Inside the EU, the drive for greater ambition has exposed fractures. Member states and the European Parliament reached a last‑minute compromise that tightens emission reductions but includes more flexibility than the Commission proposed. The European Parliament backed a 2040 target equivalent to a 90% reduction in net greenhouse gas emissions compared with 1990 levels, allowing up to 5% of those reductions to come from international carbon credits — a higher ceiling than the Commission's original 3% proposal.

Other concessions have also raised concerns among environmentalists: plans to include buildings and road transport in the EU ETS were delayed to 2028, and the final package contains additional fallback mechanisms for member states. Reactions across the bloc were mixed — Spain and Sweden pushed for stronger measures, while countries such as Poland and France warned of economic and industrial risks.

At COP30, island states — backed by Latin American countries and the EU — urged urgent responses to projections that the world is on track to exceed the 1.5°C limit above pre‑industrial temperatures. Major emerging economies, including China and Saudi Arabia, resisted language that would single them out for falling short on emissions cuts. Developing countries, especially from Africa, reiterated that the existing $300 billion annual climate finance mobilization pledge agreed last year is insufficient for adaptation and mitigation needs.

Alongside bloc‑level diplomacy, several EU member states announced targeted contributions. German Chancellor Friedrich Merz pledged what he called a "substantial sum" to Brazil's Tropical Forest Forever Facility, designed to reward countries that protect rainforests. Portugal committed €1.5 million to a transparency programme for climate legislation among Portuguese‑speaking countries, and Slovenia highlighted its 2045 climate neutrality target and rising contributions to funds including Loss & Damage.

The outcome in Belém will hinge on whether negotiators can bridge sharp differences over trade measures, finance, and ambition. For the EU, the challenge is twofold: convincing major trading partners to accept carbon pricing measures while holding the bloc together at home amid political pushback and compromises that risk diluting climate ambition.

Key figures quoted: President Luiz Inácio Lula da Silva; Ursula von der Leyen; EU Climate Commissioner Wopke Hoekstra; Spanish Ecological Transition Minister Sara Aagesen; German Chancellor Friedrich Merz; Portugal’s Environment Minister Maria da Graça Carvalho; Slovenian Environment Minister Bojan Kumer; King Carl Gustaf.