Anne Højer Simonsen is a Senior Vice President and Head of Climate Policy at Danish Industry.
In Western Europe, we just had one of the hottest summers on record. Country after country has broken temperature records, and in Denmark, temperatures reached 37°C in June for the first time ever. The consequences are impossible to ignore: More than 25,000 people have died in Europe in heat-related deaths.
Across the world, we are facing more frequent heat-related deaths, disruptions to transport and critical infrastructure, devastating wildfires, droughts, floods and crop failures affecting food security. Action is needed. More than ever, climate policy must not be shaped by short-term thinking or quick fixes. If climate action is to succeed, we must stay the course on what we know works and provide long-term stability that gives businesses the confidence to continue investing in the green transition.
Looking ahead, I believe there are three must-win climate battles for the second half of 2026.
First, climate targets must be backed by the policies and financing needed to deliver them
National climate targets must be grounded in credible policy instruments and adequate financing if they are to be achieved in practice. Targets alone do not reduce emissions. Without financing and regulatory frameworks in place that support the transition, targets will not deliver real emissions reductions. Implementation is what ultimately delivers results.
Climate policy must not become a process of placing ever-greater burdens on businesses while EU governments fail to provide the conditions necessary for the transition to succeed.
Second, the revision of the EU Emissions Trading System (ETS) will be critical for Europe’s green transition, competitiveness and energy security
In Denmark, as in many other European countries, national climate policy is increasingly shaped by the EU. Therefore, the revision of the ETS and the broader discussions on Europe’s climate architecture will be among the most important climate policy issues in the months ahead.
The ETS is Europe’s most important climate policy instrument and an EU-harmonized system. Billions of euros and vast amounts of CO₂ emissions and investment prospects are at stake. It provides a common carbon price signal, drives emissions reductions and helps ensure that decarbonisation happens in the most cost-effective way. This is both good for the climate and important for business confidence. It provides needed investment security for businesses.
In the run-up to the European Commission proposal to revise ETS1, several countries have recently criticised the ETS and sought to persuade the European Commission to weaken or even dismantle the system. This should concern us all. It would be a major setback for the European business community to weaken this proven regulation.
The proposal to revise ETS1 presented by the European Commission in July addressed the right issues. The forthcoming political negotiations will be intense and critical. Our red line will be to ensure a continued robust carbon price. This will enable businesses to plan and carry out investments in the EU’s future.
Third, global climate action must increasingly be driven by coalitions of the willing
International climate cooperation has become more challenging. We live in an increasingly unstable world where, most notably, the United States has withdrawn from international climate agreements. The United States’ withdrawal from the Paris Agreement took effect on Jan. 27, 2026. As a result, countries, states, cities, organisations and businesses committed to climate action must work even more closely together. We saw an example of this in Colombia in April, where more than 50 governments gathered for a high-level conference dedicated to advancing the transition away from fossil fuels.
The conflict in the Middle East has reinforced two issues that are fundamental to climate action: energy security — which only renewable energy can truly provide — and competitive, stable energy prices, which are best secured through renewable energy.
Perhaps contrary to his intentions, the U.S. president has helped inject new momentum into the green transition, and it is my hope that this will continue toward COP31 in Türkiye this November. Coalitions of the willing are not a substitute for broad global cooperation, but they may prove essential for maintaining momentum when global negotiations fail to move quickly enough.
These are, in my view, the three most important climate battlegrounds for the remainder of 2026. At the national, European and global levels alike, there is a growing need for political leadership, long-term stability and a clear policy direction that gives businesses the confidence to continue investing in the green transition. Only then can we translate climate targets into real emissions reductions.
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