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2026-07-17 18:08:13
[EU Carbon Market Reform Plan Unveiled, Free Allowance Allocation Pace Becomes Focus] ⑴ The European Commission proposes lowering the linear emission reduction factor of the Emissions Trading System (ETS) to 3.1% from 2031 to 2035, and further to 1.7% after 2036, a significant slowdown from the current annual contraction of 4.3%. ⑵ The absorption rate of the market stabilization reserve is planned to be reduced from the current 24% to 12% after 2030. This aims to reduce the rate of return of excess allowances and release more liquidity to adapt to the pace of industrial transformation. ⑶ The new plan allows ETS-covered industries to use international carbon offset credits to fulfill their 2% emission reduction obligations, while also planning to include 250 million tons of domestic carbon removal, opening a channel for negative emission technologies to participate in the carbon market. ⑷ The method of issuing free carbon emission permits has been adjusted. 80% of the allowances will be allocated to various industries in advance, while the remaining 20% will only be available after companies complete their established decarbonization investment commitments, aiming to strengthen the incentive and constraint mechanism.
