The European Commission is preparing a review of its emissions trading system that would extend free CO2 allowances for heavy industries, but only if those companies invest in the European Union. An internal document seen by Reuters shows the revision aims to balance industrial competitiveness with decarbonization goals. The review, due on July 15, would also require national governments to spend more ETS revenue on decarbonizing covered industries. It will expand the system to cover the EU's share of international flight emissions and redesign the market stability reserve to avoid price volatility. The Commission may also consider adding waste incinerators to the ETS over time.
