EU ETS revisions close to becoming law

Final shape of the law endorsed by European Parliament with only EU Council endorsement remaining

This week the latest reforms of the EU Emissions Trading Scheme (ETS) moved a step closer after the European Parliament's Committee on the Environment, Public Health and Food Safety (ENVI) endorsed key parts of the deal. The endorsed deal will see a 62pc cut in ETS sector emissions by 2030 compared to 2005 levels. In order to achieve this there will be a one-off reduction to the EU-wide quantity of allowances of 90mn in 2024 and 27mn in 2026, in combination with an annual reduction of allowances by 4.3pc from 2024–27 and 4.4pc from 2028–30. The endorsed deal also sees a phased introduction of a Carbon Border Adjustment Mechanism (CBAM) to replace the incumbent free allowances system. The CBA