The EU is taking steps to make carbon market rules more flexible.

The European Commission has proposed major reforms to the EU Emissions Trading System (ETS) to balance industrial competitiveness with the EU’s long-term climate ambitions. The proposed changes would offer greater flexibility in regulatory compliance for businesses, while increasing investment in industrial decarbonisation.

Highlights
• Slower reduction of carbon allowances: The annual reduction of the ETS emissions cap would decrease from 4.3% to 3.7% in 2031, and further to 1.7% from 2036, slowing the pace of emission reductions while maintaining the EU’s target of a 90% net reduction in greenhouse gas emissions by 2040.

Continue reading on Globalpccs