World’s largest carbon market faces revamp under draft EU plan | Malay Mail

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BRUSSELS, Sept 12 — The world’s biggest carbon trading market faces a major overhaul under European Union climate change plans to cut greenhouse gas emissions faster this decade, a draft seen by Reuters shows. Under the EU emissions trading system (ETS) factories and power plants have to buy...

A European Union flag flutters in front of the monument of Parthenon on Acropolis hill in Athens June 17, 2012. — Reuters pic

The draft document, which confirms that the European Commission will next week propose that the EU sets a target to cut emissions from 1990 levels by “at least 55 per cent” by 2030, lays out options it is considering delivering the new goal.The existing target of a 40 per cent cut by 2030 will not be enough for the EU to meet its goal of net zero emissions by 2050.

The Commission, which will propose a law containing the ETS reforms by June 2021, will assess what this means for the amount of free permits given to industry, a system designed to avoid companies relocating outside Europe to avoid carbon costs.

 

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