EU Slows ETS Emissions Cuts, Extends Free Permits to 2038
Updated
Updated · bbc.co.uk · Jul 17
EU Slows ETS Emissions Cuts, Extends Free Permits to 2038
3 articles · Updated · bbc.co.uk · Jul 17
Summary
Brussels proposed easing the EU carbon market by slowing annual permit-cap cuts to about 3.7% from 2031 and 1.7% from 2036, below the current 4.3% pace.
The overhaul would also let some industries keep free emissions permits until 2038 instead of 2034 if they commit to decarbonisation, with 80% allocated up front and the final 20% after investments are made.
The Commission said the changes make the ETS more business-friendly while staying aligned with the bloc's goal of cutting emissions 90% by 2040 versus 1990 levels.
Italy and other member states have criticized the ETS for raising energy costs, Poland welcomed the softening and wants further weakening, while Green lawmakers warned it would lock in heavy pollution.
EU countries and lawmakers still must approve the package, a process the report said could take about a year.