A new European alliance seeks cheaper energy and greater regulatory flexibility.
WARSAW
Italy and Poland have joined forces to push for revisions to European Union environmental regulations, arguing that rising energy costs and increasingly demanding climate requirements threaten the competitiveness of European manufacturers. The agreement strengthens an emerging coalition seeking to reshape the economic conditions of the green transition without formally abandoning the bloc’s decarbonization objectives.
Italian Industry Minister Adolfo Urso and Polish Finance and Economy Minister Andrzej Domański signed a joint declaration in Warsaw during the ninth ministerial meeting of the Friends of Industry initiative.
The central demand concerns the EU Emissions Trading System, which places a price on carbon emissions from power generation and energy-intensive industries. Both governments want climate obligations to reflect the technological capabilities and financial circumstances of European businesses.
Italy and Poland are particularly concerned about the planned withdrawal of free emission allowances. They want that process suspended until the effectiveness of the Carbon Border Adjustment Mechanism, or CBAM, has been demonstrated.
The mechanism is intended to apply carbon-related costs to selected imports, reducing the competitive disadvantage faced by European manufacturers operating under stricter emissions rules.
Supporters of the proposed revisions argue that premature withdrawal of protections could encourage companies to relocate production outside Europe. Maintaining free allowances, however, could also reduce incentives to invest in cleaner industrial processes.
The initiative extends beyond carbon pricing. Both governments are seeking changes to the EU’s automotive emissions framework, including the rules scheduled to govern new cars from 2035.
They want greater recognition of vehicles powered by climate-neutral fuels, including certain biofuels, under a policy approach described as technological neutrality.
That position could create additional options for automotive manufacturers, although the environmental performance of alternative fuels depends on their production methods and actual emissions.
Italy’s diplomatic strategy has also involved the Czech Republic. Previous discussions between Prime Ministers Giorgia Meloni and Andrej Babiš addressed energy prices, industrial competitiveness and carbon-market reform.
The Warsaw declaration broadens that cooperation and could strengthen its influence in future EU negotiations.
Energy infrastructure, steel production and chemical manufacturing feature prominently in the agreement. The two countries support improvements to electricity networks, greater energy security and stronger protections against unfair international competition.
They also propose restrictions on exports of ferrous scrap, which manufacturers consider an important raw material for European steel production.
Cooperation may extend to artificial intelligence, high-performance computing, quantum technologies and aerospace industries.
The declaration does not change EU law. Any regulatory revisions would require further negotiations and the applicable European legislative procedures.
For Brussels, the debate presents a difficult balance between climate commitments and industrial competitiveness. Relaxing requirements could reduce immediate business costs, but delaying decarbonization may introduce other economic and environmental risks.
Italy and Poland have now established a common negotiating position. Its significance will depend on whether they can secure broader institutional support and translate their proposals into legislation.
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