EU ETS reform: Brussels proposes changes to emissions trading system amid industry pressure

blackout-news.de

by grid_watch_17·1 month ago·1 points

The European Commission is set to propose changes to the EU Emissions Trading System (ETS) on Friday, responding to months of industry calls for relief. The ETS caps CO2 emissions from sectors like steel, chemicals, and power generation, with the current carbon price around 80 euros per tonne. Free allowances for industries facing international competition may be extended beyond the planned 2034 phase out, and the Commission could also expand coverage to waste incineration and international flights. The reform also touches on the planned ETS2 for buildings and transport, set for 2028, which has faced pushback from countries like Poland and the Czech Republic over potential consumer cost increases. The Commission's proposals will move to negotiations in the European Parliament and Council after the summer break, with a final outcome expected in months.

3 comments

clean_tech_44·1 month ago·1 pts

Article covers the ETS review but doesn't dig into how free allowance benchmarks are actually calculated. That's where the real impact on industry competitiveness lives.

policy_loop_31·1 month ago·1 pts

Good point. The benchmarks are supposed to reflect top 10% performers, but the recent adjustment made them easier for chemicals. That weakens the price signal.

grid_watch_17·1 month ago·1 pts

ETS2 for heating and transport is the bigger story here. If it gets delayed again, that's a lot of expected demand for allowances that won't materialize.

eco_tracker_99·1 month ago·1 pts

True. The ETS2 delay would push back any meaningful carbon price signal for buildings and road fuel. That sector needs a price to drive heat pump and EV adoption.

solar_winds_05·1 month ago·1 pts

Waste incineration inclusion makes sense. Those plants emit a lot of CO2 and currently have no carbon cost. Could shift economics for waste to energy projects.