May 11 (Reuters) – The European Commission on Monday proposed giving more free emissions permits to industries over the next few years, potentially saving companies 4 billion euros ($4.7 billion) in CO2 costs.
The proposals confirmed a Reuters report based on an internal EU document last week.
• The European Union’s carbon market is the bloc’s main tool for addressing CO2 emissions, which it does by forcing industries to buy CO2 emissions permits when they pollute.
• The scheme has come under growing political pressure from member states worried about Europe’s faltering economic competitiveness.
• Some heavy industries have urged Brussels to give them more free CO2 permits to ease the cost of complying.
• In the new proposal, industry will on average continue to receive free allocation covering around 75% of its emissions.
• Coverage of indirect emissions will lead to a higher benchmark, with an expected financial impact of around 4 billion euros between 2026 and 2030, the Commission said.
• The Commission will adopt the benchmarks by the end of June.
• The measures are part of a broader review of the system, due in July.
• The Commission says it will propose the introduction of sector-specific fallback benchmarks as part of that revision.($1 = 0.8499 euros)
(Reporting by Bart Meijer; Editing by Joe Bavier)