EU Crafts plan to give extra free CO2 allowances this year, say diplomats
According to EU diplomats and draft conclusions for the EU leaders summit, the European Union will grant additional 'free CO2 permits' to industry this year in order to help it compete against foreign competitors. The move may allow companies to increase their emissions.
The plan is a response to the pressure of countries such as Italy, Poland, and the Czech Republic, to loosen up the EU's flagship policy on climate change, the Emissions Trading System.
The ETS requires heavy industries to purchase?permits for CO2 emissions, which provides an incentive to emit the least amount of CO2. There is also a free pool of CO2 permit allocations that firms can get. The Commission intends to add more permits, despite the opposition from some members states.
The draft conclusions for the EU summit on Thursday, as seen by, indicate that EU leaders will endorse a plan to have the Commission present "a separate proposition to address concerns raised by certain industrial sectors regarding ETS benchmarks", along with the revision of the ETS.
The cryptic language, according to diplomats, referred to an agreement?done earlier this week in Brussels, where the Commission agreed that it would propose rapid changes to the rules for determining "how many free emission permits the EU grants industries based on heat production and fuel use", called "fallback benchmarks".
A document published by the EU on Monday confirms that the Commission has agreed to submit "a separate proposal" aimed at increasing free allocation based on fall-back benchmarks.
The document stated that the deal would be effective from?January 1, 2026. This means that chemical?producers and refineries, as well as other CO2 emitters, could receive free CO2 permits for this year.
A spokesperson for the Commission confirmed the details of the public document but declined to comment any further. (Reporting and editing by Kate Abnett; William Maclean).
(source: Reuters)
