Overview
- The European Commission is considering three options for free allowances: scrapping them in favor of buying permits for a growing share of emissions, tying them to low‑carbon investments, or largely keeping the current system.
- The planned revision would also rework the ETS cap to avoid reaching zero in 2039 and align with a target to cut domestic emissions 85% by 2040.
- Commission officials aim to table the carbon market proposal in the third quarter, according to the internal presentation reported by Reuters.
- Industry pressure is intensifying, with BASF’s CEO calling the current ETS obsolete, citing annual permit costs in the triple‑digit millions of euros and warning of steeper bills without reform.
- The chemicals lobby Cefic reports plant closures have doubled in a year and investment has roughly halved, as EU carbon prices trade near €80 per ton and the Czech prime minister urges limits on the price.