EU policymakers are looking at increasing the number of free carbon permits available to businesses under the Emissions Trading System. The move would give certain industries more allowances without requiring them to buy permits at auction, which could lower their compliance costs but also weaken the carbon price signal that drives investment in cleaner production. The article reports that the European Commission is weighing this option as part of broader ETS reforms. Critics argue that handing out more free permits undermines the polluter pays principle and could slow industrial decarbonization. The final decision will depend on negotiations between member states and the European Parliament.
