EU proposes slowing down cuts to carbon emissions for businesses
The European Union has proposed relaxing its emissions trading system rules to give businesses more time to meet carbon reduction targets. The plan aims to align with 2040 climate goals while offering a more business-friendly approach to industrial decarbonization.
Why it matters
This policy shift reflects the tension between aggressive climate action and the economic pressures faced by European industries, potentially impacting global energy costs.
Image source, Getty Images Image caption, The ETS, introduced in 2005, is the EU's main tool for curbing greenhouse gases.
The European Union has unveiled proposals that would slow cuts to businesses' greenhouse gas emissions limits, as part of a major climate policy overhaul.
The reforms would relax the rules of the bloc's emissions trading system (ETS) to give businesses more time to reduce their carbon output than previously planned.
The changes would mean some industries could obtain emission allowances until 2038 instead of 2034, if they commit to investing in decarbonisation efforts.
The proposals still need to be approved by EU countries and lawmakers - a process that could take a year.
"We are adopting a more business-friendly and, may I say so, savvy approach," said EU climate commissioner Wopke Hoekstra.
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