The European Commission has presented a proposal for a fundamental reform of the Emissions Trading System (ETS), which aims to balance the EU's climate goals with the continent's economic competitiveness. One of the most significant changes is the expansion of the system's scope to the aviation sector.
According to the new plan, international flights arriving in Europe from destinations within a 5,000 km radius will be required to pay for their carbon emissions starting from 2029. Climate Commissioner Wopke Hoekstra emphasized that aviation is the only major sector where emissions continue to grow, and the new rules will help level the playing field with other regions.
However, softer transition mechanisms are planned for industrial companies. They will be able to receive free emission quotas after 2030, but under a new mechanism: 80% of them will depend on an approved decarbonization investment plan, while the remaining 20% will be granted only after real emission reductions are achieved.
Another key change is the direction of revenues. Until now, member states have held about 80% of ETS revenues, but less than 10% of them were directed toward industrial decarbonization. The new reform will mandate national governments to spend 50% of these revenues on investments in green technologies within the sectors covered by the system.
However, the proposal has sparked sharp disputes in Brussels. A group of 10 member states, including Italy and countries from Central and Eastern Europe, warned that overly aggressive climate requirements could "push industries out of Europe." On the other hand, environmental organizations like WWF criticize the plan, calling it a "Trojan horse" that gives too many concessions to major polluters.
You may also like
- European transport network is not prepared for climate apocalypse: Forecasts of billions in damages
- Europe considers automatic speed limiting via satellites and 5G: Possible interference in vehicle control
- GERB: The US request for aircraft in Bulgaria is related to the Middle East, not to exercises
- Energy Bridge Between Europe and Africa: Portugal and Morocco Seek EU Support for New Project
In an attempt to support the transition, the Commission also proposes the creation of an "Industrial Decarbonization Bank" to provide 100 billion euros for projects in member states. The reform has already been submitted to the European Parliament and the Council of the EU, where heavy negotiations are expected to follow.