Jaak Madison: Estonia should aim to stop the ETS

Estonian Member of the European Parliament Jaak Madison has called on Estonia to seize the opportunity created by the European Commission's recent decision to ease the CO2 emissions trading system (ETS). In his view, the current version of the ETS should be consigned to the ash heap of history.

Madison writes that with its latest proposal, the European Commission has acknowledged what European companies and consumers have been saying for years: the ETS is destroying Europe's economy. He notes that the bloc's climate policy was based on the assumption that if Europe cuts emissions quickly, the rest of the world would follow. In reality, major economies like the United States, China, and India continue to increase industrial production, and global CO2 emissions have risen each year.

The MEP argues that this policy makes Europe less competitive. When a European company must pay ever-higher carbon penalties while a competitor in China or the U.S. does not, production moves to countries without restrictive regulations. This leads to a loss of investment, jobs, and tax revenue, while energy prices rise, making all goods and services more expensive.

According to Madison, the Commission's easing measures are only cosmetic; they stop halfway and keep pressure on industry. Leaders in Estonia's oil shale sector have already stated that the new measures do not help them because the core logic of the ETS remains unchanged. He also criticizes the current Estonian government, citing Energy and Environment Minister Andres Sutt's remark that Estonia wants to be "the last obedient soldier of the green transition."

Madison insists that Estonia should actively defend its national interests in Brussels, using the same political tools – including veto power – as larger member states like Germany, France, Italy, and Poland. He expresses hope that after the spring Riigikogu elections, Estonia will have a stronger mandate to protect its economic security.