The reforms include a phase-out of free allowances for certain industries, a cap on the total number of allowances, and a new carbon border adjustment mechanism. The approval of the reforms by the European Parliament is a major victory for the European Commission, which has been pushing for these changes for several years. The reforms are now expected to be adopted by the Council of the European Union, which would make them law.
The approval of the reforms is a significant step forward for the EU’s climate policy. The reforms will help to ensure that the EU’s carbon market is more effective in reducing greenhouse gas emissions. They will also help to ensure that the EU is leading the way in the fight against climate change.
The European Parliament has approved a major reform of the EU carbon market, including the introduction of a carbon border adjustment mechanism (CBAM). The CBAM will put a price on carbon emissions from imported goods, such as steel, cement, aluminum, fertilizers, electricity, and hydrogen. This will help to level the playing field for European businesses and protect the EU’s climate goals.
The Parliament also agreed to a 62% reduction in greenhouse gas emissions by 2030 from 2005 levels. This will be achieved by phasing out free allowances for industrial emissions and expanding the scope of the EU emissions trading system (ETS) to include buildings and road transport.
The Parliament’s decision is a major step forward in the fight against climate change. The CBAM will help to ensure that imported goods are subject to the same carbon price as domestically produced goods, and the emissions reduction target will help to put the EU on track to meet its Paris Agreement commitments.