FILE PHOTO: European Union flags flutter outside the European Commission headquarters, during an EU leaders summit at the European Council headquarters, in Brussels, Belgium December 10, 2020. REUTERS/Yves Herman/File Photo
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.