EU weighs overhaul of industry’s free permits in carbon market reform

The European Union is considering changes to its system of free carbon dioxide permits for industry, according to an internal document reviewed by Reuters. The move is part of a broader plan to reform the EU’s carbon market. The current scheme issues free CO2 allowances to certain industries to help them meet climate targets. However, the EU aims to revise this approach to better align with its emission goals. The potential overhaul may affect how industries receive these permits and could introduce new rules for the allocation process. The reform is still in discussion and aims to refine the carbon market’s effectiveness. The EU hopes such changes will contribute to its broader climate policy objectives. The document reflects early-stage considerations rather than finalized decisions. Further analysis and consultation within the EU are expected before any legislative proposals.