According to the Czech EU president and the European Council, negotiators for the European Union achieved a deal early on Sunday, December 18, to revamp the bloc’s carbon market, its primary instrument for combating global warming.
“The agreement will allow us to meet climate objectives within the main sectors of the economy, while making sure the most vulnerable citizens and micro-enterprises are effectively supported in the climate transition,” Czech environment minister Marian Jurecka said in a statement.
In order to achieve that goal, the EU carbon market must be changed to reduce emissions more quickly. Currently, almost 10,000 enterprises and power plants are required to purchase CO2 permits when they pollute.
The European Council announced in a statement that after 30 hours of negotiations that began on Friday, December 16, negotiators had decided to increase the overall objective to cut emissions in the sectors covered by the European Emissions Trading System to 62% by 2030.
Additionally, the negotiations agreed to rebase “the overall emissions ceiling over two years of 90 and 27 million allowances respectively, and increase the annual reduction rate of the cap by 4,3% per year from 2024 to 2027 and 4,4 from 2028 to 2030”.
Also, a Social Climate Fund will be created to support vulnerable households, microbusinesses, and transport users deal with the economic consequences of an emissions trading system for buildings, road transportation and fuels for more sectors.
The European Council, which brings together the member states of the union, and the European Parliament still need to formally approve the provisional agreement.
Author-Roberta Appiah
