The European Union’s Emissions Trading System or ETS is under review as EU lawmakers work to slash emissions by 55% by 2030. However, a compromise remains distant hope as officials and companies operating within the carbon market are struggling to reach a compromise.
The emissions trading system has allowed the European Union to cut greenhouse gases by 43% since its launch. The program which was introduced in 2005 forced power plants and factories to buy CO2 permits and limited their supply of said permits effectively suppressing emissions.
The proposed overhaul would see to the launching of an Emissions Trading System in 2026, one that will impose CO2 costs on fuel suppliers. While some viewed the proposal as stringent, European Parliament negotiator Jytte Guteland stressed that there's no room for watering down climate law.
The ETS overhaul comes at a time when transport emissions, as well as emissions linked to heating, are rising and shaping a third of total EU emissions. However, with gas prices soaring to record levels member states have voiced concerns over high energy bills hurting poorer citizens. Some countries are looking to compromise by delaying the implementation of the new ETS.
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