Q&A: What the EU’s carbon market review means for climate action

Carbon Brief is reporting on major reforms the European Commission proposed for the EU's carbon market. The plan extends free allowances for companies through twenty thirty-eight, four years beyond what was previously planned, but only if they commit to climate investments in Europe. The commission is also pushing back the timeline to reach zero emissions by roughly a decade. Separately, the EU is setting a new target for electricity to make up forty-six percent of energy consumption by twenty forty, up from the current twenty-three percent. The commission estimates this shift could save the EU two hundred sixty billion euros annually in fossil fuel imports. Environmental groups worry the extended allowances could undermine climate goals, while industry groups say the changes provide necessary relief.

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