European Commission proposes to ease emissions requirements for EU industry
Climate policy and economic competitiveness often collide, and the European Union once again faces this dilemma. On one hand — ambitious emission reduction targets; on the other — the fear that stringent requirements will drive industry out of Europe. The European Commission's proposal to slow the pace of quota cuts and extend free allocation periods is an attempt to strike a balance that would satisfy both climate activists and manufacturers.
On Friday, the European Commission proposed to revise the EU emissions trading system to ease requirements on European companies to cut emissions. Specific measures include slowing the annual reduction in the total volume of EU carbon emission allowances between 2031 and 2040 and extending the free allocation period for EU companies until 2038. Earlier, 10 countries — Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Italy, Poland, Romania and Slovakia — signed a joint statement calling on the EU to balance environmental protection with industrial competitiveness.
These countries argue that current emission reduction plans will lead to industry leaving Europe. While slowing the pace of emission cuts, the European Commission stressed that the target of reducing net greenhouse gas emissions by 90 percent by 2040 remains unchanged.
The Emissions Trading System (ETS) is the EU's main tool for reducing greenhouse gas emissions. It operates on a "cap and trade" principle: the total volume of allowances is reduced annually, encouraging companies to switch to cleaner technologies. However, rising carbon prices in recent years have raised concerns among European manufacturers, particularly in energy intensive sectors such as steel, chemicals and cement.
As CCTV+ reports. The Commission's proposal is expected to spark lively debate in the European Parliament and among member states, where views on climate policy traditionally diverge.
