EU confirms Brexit-adjusted carbon market permit removals for 2021

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The European Commission confirmed late on Friday how many pollution permits will be removed from the European Union carbon market in 2021 due to Britain's departure from the scheme at the end of this year.

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, June 5, 2020. REUTERS/Yves Herman

The carbon market is the EU’s flagship climate policy, forcing power plants, industry and airlines running intra-EU flights to buy permits when they emit planet-warming greenhouse gases. The Commission said in a statement that the carbon market’s Market Stability Reserve , which removes excess permits from the system, would withdraw fewer permits in 2021 to reflect Britain’s departure.

The amount of permits in the carbon market is based on the emissions of installations covered by the scheme. The EU has said it will adjust the supply of permits in 2021, to reflect the exit of British installations. The MSR reduction is based on this adjusted supply. [L4N2I33AT]

 

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