EU Plans More Free Emission Permits, Saving Industry Billions

The European Commission is preparing changes to its emissions permit system that could save industry around €4 billion, equivalent to approximately $4.4 billion. According to an internal document, Brussels plans to extend the calculation of free permits to cover indirect emissions between 2026 and 2030, increasing the volume of permits available to businesses.

The emissions trading scheme is a key EU tool for reducing CO2 emissions, but it faces growing pressure from both member states and industry. Companies have pointed to the negative impact of high costs on the competitiveness of the European economy.

The proposed regulation is intended to make use of existing flexible rules and respond to industry demands. The proposal is not yet final and may still change. The Commission plans to present it in the coming weeks, with a final decision expected in June.

(reuters, mja)