EU Carbon Market Reform Set to Include One-Off Emissions Cap Cut
- EU to propose higher annual rate for reducing emissions
- Commission will unveil carbon trading overhaul on July 14
Photographer: Krisztian Bocsi/Bloomberg
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The European Union’s executive is poised to propose a combination of tools to tighten the world’s biggest carbon market -- including a one-off reduction in the emissions cap -- and sync it with a stricter climate goal for 2030.
The European Commission is currently designing the deepest overhaul of the bloc’s Emissions Trading System since the program’s inception in 2005 as part of a broader package of measures to be proposed on July 14. The cut in the pollution cap will be accompanied by an increase in the rate at which the annual emissions limit shrinks each year, likely from 2026, according to two people with knowledge of the matter.