The European Commission has drafted plans to provide industries with more free emissions permits, according to an internal EU document Reuters obtained access to on Monday (4 May).
The EU’s carbon market is the primary tool for regulating and reducing carbon emissions within the bloc. The scheme puts a price on carbon emissions, which industries are forced to buy when releasing CO2.
The easing of the carbon market emerges from the requests of heavy industries to lower compliance costs and concern among EU member states regarding the bloc’s declining economic competitiveness.
An internal Commission presentation seen by Reuters revealed that Brussels intends to factor in companies’ indirect emissions when deciding to supply industries with free CO2 permits in the 2026-2030 period. This approach is a shift from their current practice, which only factors direct emissions into permit assessments.
According to the Commission’s document, these changes would save industries 4 billion euros' worth of free emissions permits.
The document stated that the plan “addresses industry’s concerns” while staying within the bounds of the marketplace’s flexible rules.
The drafted document is due to present this plan prior to its finalisation in early June.
A Commission spokesperson withheld comment regarding the document.
Source: commonspace.eu with Reuters