Overview
- On Friday, Reiche welcomed the European Commission's July reform package but urged negotiators to extend free allocation of emissions rights past 2039 and to set allocation rules that reflect real industrial plants.
- The Commission proposal would slow the annual reduction of tradable CO2 allowances through the 2030–2040 window and expand free certificates for some sectors, easing near‑term cost pressure on energy‑intensive firms.
- Industry groups and major firms say the change must come with cheap green power, reliable hydrogen supplies and long‑term regulatory certainty to avoid higher costs and investment risks in Europe.
- Greens and environmental NGOs, including the WWF, warn the measures would weaken the carbon price, penalize companies that already invested in low‑carbon technology and postpone structural decarbonization into the 2040s.
- The dispute now moves to EU negotiations where lawmakers must balance short‑term industrial competitiveness and long‑term climate goals, with the ETS still the bloc’s main tool for putting a price on carbon and cutting emissions toward 2050.