EU to slow pace of industry carbon cuts under ETS overhaul
EU proposes to slow the tightening of the emissions trading system by extending free permits to 2038 for firms investing in decarbonisation, lowering the cap-reduction rate to 3.7% from 2031 and 1.7% from 2036 (instead of 4.3%), and keeping 80% of permits upfront with the rest upon investment; the plan, part of a broader climate policy overhaul, still requires approval by member states and the European Parliament to meet the EU's 2040 emissions target.