Document shows EU will give more CO2 permits to industries for free

A document from the EU, seen on Monday, revealed that the European Commission had drafted plans to provide more free 'emissions permits' to industries in the coming years. This move could save companies 4 billion euros ($4.68billion) in CO2 costs.

The EU's Carbon Market is the bloc's primary tool to address CO2 emission. It does this by forcing polluting industries to purchase CO2 emission permits.

Some heavy industries have asked if Brussels could give them more CO2 permits for free to ease the cost of compliance.

A presentation from the internal Commission, which was seen by, revealed that Brussels intended to include indirect emissions of companies in its calculations to determine how many CO2 free permits industries will receive between 2026 and 2030.

The current method of counting only direct emissions would be replaced by this new approach.

According to the document of the Commission, this 'change' would result in industries receiving an additional 4 billion euros worth of free emission permits.

It said that the plan "addresses" industry concerns by using existing flexibilities within EU rules on carbon markets.

Early this month, the Commission will present a draft of the?plans which may still be changed before adopting a final copy in June.

A spokesperson for the Commission declined to comment. Reporting by Kate Abnett, Editing by Joe Bavier.

(source: Reuters)