EU proposes slowing down cuts to carbon emissions for businesses
Under the proposals, the EU plans to relax its emissions trading system to give companies more time to reduce their carbon output.
AI Summary
The European Union has proposed relaxing its emissions trading system to slow the pace of carbon emission cuts for businesses, extending the timeline for some industries to obtain allowances until 2038 if they invest in decarbonisation. The plan would reduce the annual cap on emissions permits at a slower rate—around 3.7% from 2031 and then 1.7%—and still requires approval from EU countries and lawmakers. The EU climate commissioner described the overhaul as a more business-friendly approach, while the ETS remains the bloc's main tool for cutting greenhouse gases.