In brief
The European Union has announced a proposal that would slow the rate of reductions in its Emissions Trading System, allowing industrial companies more time to cut emissions. The plan extends the period during which free carbon allowances are provided until 2038 and lowers the annual cap‑tightening from 4.3% to 3.7% starting in 2031, then to 1.7% from 2036. EU climate commissioner Wopke Hoekstra calls the approach business‑friendly while still aiming for a 90% cut by 2040, but critics argue the changes could delay climate progress and exacerbate future warming. Member states such as Italy and Poland have expressed divergent views, with Poland seeking further relaxation and Italy warning of high energy costs. The proposal must still be approved by EU member countries, a process that could take up to a year.
EU to slow ETS carbon‑cut timetable
The European Union has put forward a proposal that would extend the rate at which the bloc’s Emissions Trading System (ETS) tightens it, giving industrial companies a longer runway to lower emissions.
The reforms would repair the ETS to allow firms to keep receiving free permits until 2038, instead of the 2034 deadline set in the original climate target. It also proposes to slow the annual reduction of the cap to 3.7% from 2031 and to 1.7% from 2036 rather than the current 4.3% pace.
EU climate commissioner Wopke Hoekstra said the move is a “business‑friendly and savvy” approach that still aligns with the EU’s 90% cut goal by 2040 relative to 1990 levels.
However, member states such as Italy voice concerns that the ETS has become a “de‑facto tax”, and Polish climate minister Paulina Hennig‑Kloska vows to push for even softer limits.
Critics argue the changes could delay Europe’s progress in reducing warming and make future generations face higher temperatures.
