Europe’s carbon market forces power plants and factories to buy CO2 permits when they pollute. It has slashed those sectors’ emissions by 43% since 2005, but is facing a revamp to hit more ambitious EU climate change targets.
Parliament will vote on a deal agreed last year by negotiators from EU countries and Parliament, to reform the carbon market to cut emissions by 62% from 2005 levels by 2030.
Under the upgrade, factories will gradually lose the free CO2 permits they currently receive by 2034. The measures will also force ships to start paying for their emissions from 2024.
Lawmakers will also vote on the EU’s world-first plan to impose CO2 levies on imported goods including steel and cement from 2026, a policy designed to put European and foreign firms on a level footing.
The laws still need final approval from EU countries, who will assess them in the next few weeks, before they enter into force.
That approval is usually a formality…
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