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EU delays rules on carbon market permit handouts

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The European Commission will confirm in February rules to calculate industries' free carbon permits over the next five years, it said on Friday, pushing back a plan to finish the regulations this year.

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

The EU’s carbon market forces polluters to buy permits to cover their emissions, but gives some free permits to industry to deter companies from relocating to outside of Europe to avoid carbon costs. The Commission said on Friday it would finalise in February the “benchmarks” to determine industries’ free permits over the 2021-2025 period.

Once that is completed this year, countries will inform the EU how many free permits they intend to give their industries.

 

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