Dispatch from the European Union | July '26
*** Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'. ***
Stories to watch in the weeks ahead
- Europe burning: Massive wildfires are burning across many European countries. Data collected by the European Commission's Joint Research Centre shows that blazes have already burned 254,388 hectares in 2026, releasing an estimated 8.31 million tonnes (Mt) of CO2 over the past seven months. According to scientists of World Weather Attribution, human activity made the extreme fire weather at least twice as likely in France and at least 20 times more likely in Spain. And the damage is twofold, as forests not only release large amounts of carbon when they burn, but also lose part of their ability to absorb CO2 afterwards and stop being a natural carbon sink to become net emitters instead. That double impact makes it harder for member states to meet the EU's climate targets, raising questions over whether existing rules remain fit for a future shaped by extreme weather events just ahead of the Commission's upcoming review of the EU's land-use and forestry (LULUCF) rules. The regulation is due for a revision in December.
- Budget talks: Negotiations on the EU's next long-term budget are set to intensify under the Irish Presidency of the Council of member states in the coming months, with the role played by climate action as one of the most politically contentious questions. A key point is whether revenues from the EU Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) should become permanent "own resources" for the bloc. The Commission wants to channel part of these revenues directly into the EU budget from 2028, arguing they could help finance policy priorities, including the green transition. The proposal would mark a significant shift in how carbon pricing revenues are used, moving part of them away from national governments and into the EU budget. Member states have only begun discussing the idea, but Ireland will have to prepare its ‘negotiation box’ document for the next leaders' summit, in October.
The latest in EU policymaking – last month in recap
- A long-awaited review: The European Commission has unveiled its blueprint for an overhaul of the EU ETS, seeking to align the bloc's flagship climate policy with its new 2040 emissions target. The proposal combines greater flexibility for industry with continued reliance on carbon pricing as the EU's main decarbonisation tool. Among the most significant changes are a slower decline in the emissions cap after 2030 (the maximum amount of emissions allowed), new support for industrial decarbonisation through ETS revenues, and the possible future integration of permanent carbon removals and a limited use of international carbon credits. The package now heads into negotiations between member states and the European Parliament, where finding a balance between climate ambition and industrial competitiveness is expected to become one of the defining political debates of the coming year. [See also the Carbon Pulse's portal for information on the EU carbon market and policy negotiations.]
- Betting on clean power: The Commission has also presented its first-ever Electrification Action Plan, signalling that replacing fossil fuels with clean electricity is becoming a central pillar of EU industrial and energy policy. Rather than introducing major new legislation, the strategy focuses on removing practical barriers that have slowed electrification for years, from the high cost of electricity compared with gas, to grid bottlenecks and slow deployment of smart infrastructure. It also set the EU's first electrification goal, targeting an electricity share of 46 percent in total energy use by 2040, and introduced rules underpinning the target, including to align national power and gas taxation, and steer energy use and investment through changes to the grid.
- “Obscene” profits: Just as the summer is testing the EU's fragile preparedness for a future marked by climate change, Italy's energy giant Eni reported booming profits this week and announced plans to further increase oil and gas production while expanding new upstream projects abroad. Similar for British Shell, which boasted 9.8 billion US dollars in Q2 profits. Greenpeace political campaigner Rudy Schulkind commented "We're running out of words to describe the obscenity of these numbers.”
Emanuela’s picks: Good reads and upcoming publications
- What a time to do our job: Before leaving for my summer break, I was in Brussels to follow weeks of intense work by policymakers setting the course for the next chapter of the bloc's climate policy. Now, however, I am sending this Dispatch from northern Italy, where I just saw an air tanker flying over my terrace, full of sea water to drop on some nearby forests. I am writing in around 38°C: yet another reminder of a warming climate. The UN Environment Programme (UNEP) and the Copernicus Climate Change Service (C3S) are inviting journalists to a practical briefing on reporting extreme heat accurately, fairly, and with a focus on sustainable cooling solutions. Save the date: Wednesday, 5 August at 4pm CEST. To register, write to unep-newsdesk@un.org.
- Look elsewhere: Eqlima.fr is a project of Mariam Mana, an Afghan journalist in exile who wants to create a media platform on climate change in Afghanistan. Colleagues within the Oxford Climate Journalism Network said she is looking for feedback, funds, and advice to develop it. Go get in touch!
- Solutions: The Straits Times in Singapore released a package of stories looking at four vulnerable groups of outdoor workers and how they keep up with heatwaves. They may be inspiring for those among us who are less used to high temperatures.
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