EU ETS overhaul: airlines to pay for CO2 from 2029, free allowances tied to decarbonization plans
euobserver.comThe European Commission has proposed a major overhaul of the EU Emissions Trading System (ETS). International flights arriving in Europe from within 5,000 km will have to pay for their CO2 emissions starting in 2029. The reform also changes how industrial companies receive free emissions allowances: they will get 80% after publishing a board-approved decarbonization investment plan, and the remaining 20% only after delivering actual emissions reductions. National governments will now be required to spend at least 50% of their ETS auction revenues on decarbonizing ETS sectors, up from the current level of less than 10%. The commission says the ETS has generated 270 billion euros for green investments and cut CO2 emissions by about 50% across power, transport, and manufacturing since 2005. The proposal now heads to the European Parliament and Council for amendments, where lobbying is expected to intensify.