EU unveils plan to overhaul its carbon market, softening rules to ease pressure on industry
The European Union has set out plans to overhaul its carbon market, Reuters reported, with Brussels also moving to soften the system in a bid to ease pressure on energy-intensive industry. The two developments together signal a recalibration of the bloc's flagship climate tool as policymakers weigh the twin goals of decarbonisation and industrial competitiveness. (Reuters: https://news.google.com/rss/articles/CBMilwFBVV95cUxNOEtaZVBOb0JZOEVjUXZSeGc1SUxXRV8ySGE1eDRzeEtrVkVpV3NyT2lRUWduRnBYZWVEaHBUZl96Q3JFWkV4bTNWR19zcTF2enZqYTh5ZzF4QXo2R3FZOTNQSEQxV1RCdXhqTmZ4MlpvYnN2M2ZwU3RTT1djWGNBTnNWMXNnMlRKMnVDLUUzTUxQbW5kdU5z?oc=5 and https://news.google.com/rss/articles/CBMipgFBVV95cUxOYS1kcGtvX2FiY0N0Rl9Ta0txX19fcUZJU3VWMDdqLU51Y1hpVmtyZ040UERmSzJROWdMVWZ4ZlhoRFVRY2V2R3NPRERFTWJvQU51VkkxZkVGMTlzYTJZaURHWmd6V1dwMWxpdGxneUpkby1YekZMdzFnRHJUVlNRZ1Bkdk5lanlhMTNqNy0wZnQ0MldNNHRpMHc5LXpETWtMZm8xRzN3?oc=5)
The European Union has set out plans to overhaul its carbon market, Reuters reported, with Brussels also moving to soften the system in a bid to ease pressure on energy-intensive industry. The two developments together signal a recalibration of the bloc's flagship climate tool as policymakers weigh the twin goals of decarbonisation and industrial competitiveness. (Reuters: https://news.google.com/rss/articles/CBMilwFBVV95cUxNOEtaZVBOb0JZOEVjUXZSeGc1SUxXRV8ySGE1eDRzeEtrVkVpV3NyT2lRUWduRnBYZWVEaHBUZl96Q3JFWkV4bTNWR19zcTF2enZqYTh5ZzF4QXo2R3FZOTNQSEQxV1RCdXhqTmZ4MlpvYnN2M2ZwU3RTT1djWGNBTnNWMXNnMlRKMnVDLUUzTUxQbW5kdU5z?oc=5 and https://news.google.com/rss/articles/CBMipgFBVV95cUxOYS1kcGtvX2FiY0N0Rl9Ta0txX19fcUZJU3VWMDdqLU51Y1hpVmtyZ040UERmSzJROWdMVWZ4ZlhoRFVRY2V2R3NPRERFTWJvQU51VkkxZkVGMTlzYTJZaURHWmd6V1dwMWxpdGxneUpkby1YekZMdzFnRHJUVlNRZ1Bkdk5lanlhMTNqNy0wZnQ0MldNNHRpMHc5LXpETWtMZm8xRzN3?oc=5)
The EU Emissions Trading System (ETS) is the world's largest carbon-pricing scheme, requiring power plants, factories and airlines to hold permits for the greenhouse gases they emit, with the price of those permits set by the market. Any structural overhaul therefore reaches deep into the cost base of the European economy, from electricity generation to heavy manufacturing. (Reuters)
The decision to soften the market comes as European manufacturers — particularly in energy-intensive sectors such as steel, cement and chemicals — have warned that high carbon and energy costs are eroding their competitiveness against rivals in the United States and China. Reuters reported the easing is explicitly framed as relief for industry. (Reuters: https://news.google.com/rss/articles/CBMipgFBVV95cUxOYS1kcGtvX2FiY0N0Rl9Ta0txX19fcUZJU3VWMDdqLU51Y1hpVmtyZ040UERmSzJROWdMVWZ4ZlhoRFVRY2V2R3NPRERFTWJvQU51VkkxZkVGMTlzYTJZaURHWmd6V1dwMWxpdGxneUpkby1YekZMdzFnRHJUVlNRZ1Bkdk5lanlhMTNqNy0wZnQ0MldNNHRpMHc5LXpETWtMZm8xRzN3?oc=5)
The proposed changes are likely to be closely watched by investors, polluting industries and climate policymakers alike, since adjustments to permit supply or pricing reshape the incentives that drive roughly a fifth of the bloc's emissions. The outcome will test how far the EU is willing to bend its green agenda to protect its industrial base. (Reuters)
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