EU climate policy has expanded into a complex system of overlapping instruments, sector-specific targets, and national obligations that raise costs without delivering additional emissions reductions.
The European Commission’s new Action Plan for Affordable Energy is a mix of contradictory policies could result in higher costs, greater market uncertainty, and slower progress toward a genuine energy union.
As the EU prepares to fully implement its Carbon Border Adjustment Mechanism (CBAM) in January 2026, concerns are mounting that this flagship climate policy could backfire, increasing costs for European businesses and consumers while sparking international trade disputes.
The European Union has committed to reaching climate neutrality by 2050, with a proposed 90% emissions reduction target for 2040. A Linear Route to Net Zero, assesses the economic and political feasibility of this goal.
At a time when nuclear power is enjoying a resurgence of enthusiasm among a section of public opinion and among major players such as Amazon, Google and Microsoft, who are investing billions in it to power their data centres while limiting CO2 emissions, the new European Commission includes two representatives in key positions who are notoriously opposed to nuclear power.
Capitalism, the market economy, and freedom are always on the defence, especially when politicians influence economic processes, guide behaviour, and regulate prices. In times like these, localisation is important.