Austria and four Central European countries want more flexibility in the EU carbon market, warning high decarbonisation costs risk driving investment and production overseas.

The European Commission proposed revising the bloc's major climate policy, the Emissions Trading System (ETS), on 17 July. Euronews explains what the ETS is, why it is being revised and why it has become an incredibly polarising topic on the EU agenda.

Proposed reforms to the bloc’s emissions trading system (ETS) have been described as a “gift to polluters”.