The Directive introducing new rules for the European Emissions Trading System (EU ETS) has been adopted by the Council today, following on last week's vote in the European Parliament. The revision of an important component of the EU Commission's "Fit for 55" package will gradually lower the number of available CO2 allowances in the trading scheme, providing for a 62 per cent reduction by 2030 compared to the base year 2005.
The EU Parliament and the Council also endorsed the rules for the EU's future CO2 import tax, the Regulation introducing the Carbon Border Adjustment Mechanism (CBAM). Its aim is to "incentivise non-EU countries to increase their climate ambition and to ensure that EU and global climate efforts are not undermined by production being relocated from the EU to countries with less ambitious policies", according to the Parliament's press service....
