The European Commission intends to strengthen financial support for the decarbonisation of European industry, while at the same time slowing down the pace of reduction of emission allowances under the Carbon Emissions Trading System (ETS). This was stated by the European Commissioner for Climate Action Wopke Hoekstra to the Financial Times (FT).
According to him, Brussels plans to allocate most of the ETS revenue to support decarbonisation of companies. “We need to find a solution for industry“, Hoekstra said, stressing that the changes would not hinder the achievement of the EU's climate goals. According to the FT, the European Commission will propose requiring EU countries to allocate at least half of their annual ETS revenues, estimated at around €24 billion, to modernising industry. There are also plans to slow down the reduction in the number of allowances available and extend their issuance until the mid-2040s, instead of the current 2039.
The Emissions Trading System (ETS) has been in force in the EU since 2005 and applies to industries that account for around 40% of greenhouse gas emissions. The European Commission’s proposals still need to be agreed with EU member states and the European Parliament.