By Kate Abnett
BRUSSELS, May 4 (Reuters) – The European Commission has drafted plans to give more free emissions permits to industries over the next few years, a move that could save companies 4 billion euros ($4.68 billion) in CO2 costs, an internal EU document seen by Reuters showed on Monday.
The EU’s carbon market is the bloc’s main tool for addressing CO2 emissions, which it does by forcing industries to buy CO2 emissions permits when they pollute.
The scheme has come under growing political pressure from member states worried about Europe’s faltering economic competitiveness, while some heavy industries have urged Brussels to give them more free CO2 permits to ease the cost of complying.
An internal Commission presentation, seen by Reuters, showed that Brussels planned to start including companies’ indirect emissions in the calculations it uses to determine how many free CO2 permits industries receive during the period from 2026 to 2030.
This would replace its current approach of only counting direct emissions.
The change would lead to industries receiving around 4 billion euros’ worth of additional free emissions permits, the Commission document said.
The plan “addresses industry’s concerns” by using existing flexibilities in the EU’s carbon market rules, it said.
The Commission is due to present the draft plans, which could still change, early this month before adopting a final version in June.
A Commission spokesperson declined to comment on the document.
($1 = 0.8539 euros)
(Reporting by Kate Abnett; Editing by Joe Bavier)
