The EU has set the goal of becoming climate neutral by 2050 at the latest. To achieve this, a tightening of the CO2 emissions trading within the European Union is planned.
In early June, a corresponding proposal was rejected in the EU Parliament due to the perceived insufficient effectiveness of the proposed measures. However, the Parliament has since agreed on a compromise proposal as part of the “Fit for 55” climate package.
Measures for expanding emissions trading
The proposal envisages a gradual phasing out of the free allocation of CO2-certificates to member states and subsequent allocation to companies. Starting in 2027, the number of free certificates will be reduced, and from 2032, their distribution will be completely discontinued.
Currently, 11,000 European companies are already required to compensate for the greenhouse gas emissions generated in their production processes by purchasing CO2-certificates. The plan is to extend this compensation obligation to the transport and buildings sectors.
Further measures include a climate social fund that supports citizens in coping with increasing costs due to intensified climate protection measures. In addition, a carbon border tax at the EU’s external borders is planned.
This is intended to prevent the mass import of cheap foreign products from carbon-intensive production.
However, before the proposal can be implemented, it requires approval from individual EU member states. Negotiations are planned in the coming weeks in this regard.
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