EU Parliament announces new deal to reduce carbon emissions

The EU Parliament on Sunday announced a new deal to reduce carbon emissions.

Members of the parliament and EU states agreed to reform the Emissions Trading System (ETS) for lower emissions and more investment in green technologies, according to a statement by the European parliament.

The pricing of the greenhouse gas emissions has helped significantly reduce EU emissions, the statement said.

The parliament added that ’emissions in the ETS sectors must be cut by 62% by 2030, compared to 2005.’

It also said that the free allowances, through which companies with high energy demands covered their emissions, will be phased out by 2034. They will thus be encouraged to invest more on climate friendly technologies.

Meanwhile, the Carbon Border Adjustment Mechanism (CBAM), aiming to prevent carbon leakage, ‘will be phased in at the same speed that the free allowances in the ETS will be phased out. The CBAM will therefore start in 2026 and be fully phased in by 2034.’

The EU Parliament will also adopt a separate new ETS II by 2027 for fuel for road transport and buildings’ emissions.

‘ETS II could be postponed until 2028 to protect citizens, if energy prices are exceptionally high,’ the statement read.

• Emissions Trading System (ETS)