Europe raises green energy climate hurdles with red tape revamp

The EU’s Emissions Trading System (ETS) is the region’s main device for managing emissions by providing financial incentives to cut pollution while penalising high emitters. — Reuters

EUROPEAN Union (EU) countries approved sweeping changes to the region’s carbon trading scheme and emissions laws this week, making industrial pollution more costly while generating billions of euros for funds to be used to accelerate Europe’s energy transition.

Along with other recent legislation that applies levies to imported carbon-heavy products such as metals, fertilisers and cement, and extends emissions caps to transport sectors, the recent flurry of lawmaking represents a significant strengthening in Europe’s emissions management tools.The policy moves come after two years of fierce debate and compromise among the EU’s 27-member bloc, and have been celebrated by lawmakers as a key launch pad that will help Europe realise its emissions reduction goals while enabling key industries to successfully transition away from fossil fuel use.