EU Commission weakens key climate policy to protect big industrial polluters

The European Commission has diluted a major climate regulation, according to a new report from Carbon Market Watch. The policy, intended to drive decarbonization across heavy industry, was softened after lobbying from large polluters. The changes reduce the near-term pressure on sectors like steel, chemicals, and cement to cut emissions. Critics argue the move undermines the EU's climate commitments and delays the transition to cleaner industrial processes. The report details specific provisions that were weakened, including timelines for compliance and the scope of emissions covered. For carbon market participants, this signals a slower phase-down of free allowances and a less certain trajectory for carbon prices in the EU ETS. The full analysis on Carbon Market Watch's site breaks down which industries pushed for the changes and what the revised rules mean for the bloc's 2040 climate targets. It is a key read for anyone tracking EU industrial policy, carbon pricing, and the gap between political rhetoric and actual regulatory action.