European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, Jul 16, 2020. BRUSSELS: 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.
The new target, which needs national government and European Parliament approval, could be met both by reducing production of greenhouse gases and removing them from the atmosphere.It would also require a tighter cap on the amount of permits in the carbon market, and the rate at which this cap drops each year would need to go beyond the planned rate of 2.2 per cent, the draft said.
An initial analysis found a"significant amount" of free permits would still be available under a tighter cap, the draft said.