EU eases carbon rules to help heavy industry stay competitive

Economy climate crisisenergyeuTop News EU eases carbon rules to help heavy industry stay competitive File Photo: Truck Passes By A Chemical Factory Near The Jinjie Industrial Park In Shenmu Relevant News EU eases carbon rules to help heavy industry stay competitive 16 September 2026 Saudis pound Yemen, Houthis fire at Saudi, as Middle East war spreads 16 September 2026 Fire breaks out near Androlikou, Paphos, “Astrapi” plan activated 16 September 2026 newsroom 16 September 2026 FacebookXWhatsAppEmailPrintViber European Union countries backed proposals on Wednesday to give heavy industries more free emissions permits over the next few years, in a move aimed at helping struggling companies stay economically competitive, Reuters reported. EU countries approved a European Commission proposal to grant industries an extra 121 million free CO2 permits over 2026-2030, based on their heat production and fuel use, the Council of the EU said in a statement. According to Reuters calculations, the move could save companies around €8.25 billion ($9.52 billion) in carbon costs, and grants more free permits than the Commission had originally proposed. Beneficiaries would include chemical producers, metals processing companies, and ceramics and glass makers. Under the EU’s Emissions Trading System (ETS), heavy industries must buy permits to emit CO2, creating an incentive to keep emissions as low as possible. A pool of free CO2 permits also exists to help companies compete with foreign rivals that do not face equivalent carbon costs. The new plan would temporarily increase this free allocation, even though the ETS is designed to gradually reduce free permits over time to ensure emissions fall. EU countries will now negotiate the final rules, known in EU terminology as the ETS “fall-back benchmarks,” with the European Parliament. Those talks are being fast-tracked with the aim of reaching a final deal this year. The EU is separately negotiating a broader reform of the ETS, with a deal targeted for 2027. (Reuters) Read more: EU to launch climate insurance scheme after summer of extreme weather Subscribe to our Newsletter Latest News Saudis pound Yemen, Houthis fire at Saudi, as Middle East war spreads Fire breaks out near Androlikou, Paphos, “Astrapi” plan activated War-damaged Gaza building collapses, killing 20 people sheltering inside Five historic Limassol buildings that were given new life and transformed the city’s image Cyprus must turn fiscal stability into investment and growth, Central Bank governor says Skyline Havens developers unveil construction progress to 350 guests at The Ellinikon Forbes Cyprus to debate Cyprus’s place in the new era of finance Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.