EU proposes slowing down cuts to carbon emissions for businesses
Summary
The European Union has proposed slowing down the planned cuts to carbon emission limits for businesses to give them more time to reduce pollution. The plan would allow some industries to get emission permits until 2038 instead of 2034 if they invest in cleaner technology, but the changes must still be approved by EU countries and lawmakers.Key Facts
- The EU wants to relax rules in its emissions trading system (ETS) to slow the rate of emission cuts for businesses.
- Some industries could receive permits to emit carbon until 2038, four years longer than previously planned.
- The ETS requires companies to buy permits for the carbon dioxide they emit, encouraging cleaner technology investment.
- The EU plans to reduce the yearly cap on emission permits more slowly: 3.7% per year from 2031 and 1.7% from 2036, instead of the current 4.3%.
- Free emission permits will continue until 2038 for companies investing in decarbonisation, instead of ending in 2034.
- The changes aim to meet the EU’s goal of cutting carbon emissions by 90% by 2040 compared to 1990 levels.
- Some EU countries, like Poland, want even weaker rules, while environmental politicians warn the plans could cause more pollution.
- The proposals still need approval from all EU member states and the EU’s lawmaking bodies, a process that could take about a year.
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