EU proposes slowing carbon-emissions cuts for businesses in climate policy overhaul
The European Union has unveiled proposals that would slow cuts to businesses' greenhouse gas emissions limits, as part of a major climate policy overhaul, according to the BBC (https://www.bbc.co.uk/news/articles/ckgv0zd497zo). The reforms would relax the rules of the bloc's emissions trading system (ETS) to give businesses more time to reduce their carbon output than previously planned.
By Source Reporters Newsdesk
Fri, 17 July 2026 · 1 min read
The European Union has unveiled proposals that would slow cuts to businesses' greenhouse gas emissions limits, as part of a major climate policy overhaul, according to the BBC (https://www.bbc.co.uk/news/articles/ckgv0zd497zo). The reforms would relax the rules of the bloc's emissions trading system (ETS) to give businesses more time to reduce their carbon output than previously planned.
Under the proposals, some industries could obtain emission allowances until 2038 instead of 2034 if they commit to investing in decarbonisation, the BBC reported (https://www.bbc.co.uk/news/articles/ckgv0zd497zo). The European Commission said the changes would align the ETS with the EU's goal to cut carbon emissions by 90% by 2040, compared with 1990 levels.
"We are adopting a more business-friendly and, may I say so, savvy approach," EU climate commissioner Wopke Hoekstra said, according to the BBC (https://www.bbc.co.uk/news/articles/ckgv0zd497zo). The Commission has proposed slowing the annual rate at which the cap on permits is lowered to around 3.7% from 2031 and 1.7% from 2036, down from 4.3% currently.
The plans drew a mixed response. Poland's climate minister Paulina Hennig-Kloska said Warsaw would push to weaken the policy further, calling the softening "a huge success for Poland," while German Green MEP Michael Bloss warned the plans would result in "gigantic climate pollution," the BBC reported (https://www.bbc.co.uk/news/articles/ckgv0zd497zo). The proposals still need approval from EU countries and lawmakers, a process that could take a year.
*Source Reporters corrects errors promptly. Report corrections to corrections@sourcereporters.com.*