The European Commission is weighing a proposal to increase free CO2 permits for heavy industries under the EU Emissions Trading System. This move could save sectors like steel, cement, and chemicals roughly 4 billion euros in carbon costs between 2026 and 2030. The proposed change would allow companies to receive allowances based on indirect emissions, such as electricity use, rather than just direct emissions. This adjustment aims to prevent industrial flight and maintain global competitiveness while the EU continues its broader decarbonization efforts.
