EU Parliament Approves New Emissions Trading System

On 18 April 2023, the EU Parliament approved the provisional political plan to reduce CO2 emissions in the EU agreed on by the Council and the European Parliament on 18 December 2022.

This plan is based on proposals of the "Fit for 55" package presented by the European Commission in 2021 to reduce the EU's net greenhouse gas emissions by 55 % compared to 1990 levels by 2030 and to achieve climate neutrality by 2050.

Adaptation of the EU Emissions Trading System (ETS)

Under the present agreement approved by the Parliament, sectors covered by the ETS (e.g. energy-intensive industry sectors, aviation, electricity and heat generation) are obliged to reduce their emissions even further. As stated in the provisional political plan, CO2 levels in these sectors are required to drop by 62 % compared to 2005 levels by 2030.