Six EU Countries Resist CO2 Permit Cuts

The International — European Commission>>>'s plan to gradually reduce free CO2 permits for industries until 2030 has met significant resistance from six European Union>>> member states: Bulgaria>>>, the Czech Republic>>>, Greece>>>, Poland>>>, Romania>>>, and Slovakia>>>. These countries, in a joint paper, have demanded that the number of free CO2 permits be frozen at last year's levels. Their primary concern stems from the surge in energy prices following the Iran>>> war, which they argue threatens the competitiveness of their energy-intensive industries and could lead to closures or relocation outside the European Union>>>. The International — European Commission>>>'s proposed changes aimed to lower carbon costs for industry by 4 billion euros by 2030 by slowing the reduction of free allocations. However, countries like Spain>>> and Sweden>>>, which are further along in their clean energy transition, have urged Brussels not to weaken the Emissions Trading System, the EU's main tool for addressing CO2 emissions. EU industry ministers are set to discuss the matter, with a final version of the rules expected by the end of June, and a longer-term revision of the system planned for mid-July.