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Reuters

Business

By Kate Abnett

EU Parliament backs overhaul of Europe's biggest climate policy

European Union Europe European Parliament Peter Liese Climate Change

FILE PHOTO: Industrial machines are seen in front of the Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, in Rogowiec, Poland October 20, 2022. REUTERS/Kuba Stezycki/File Photo

The European Parliament on Tuesday approved sweeping reforms to make EU climate change policies more ambitious, including an upgrade of the bloc's carbon market that is set to hike the cost of polluting in Europe.

Europe's carbon market forces power plants and factories to buy CO2 permits when they pollute. It has slashed those sectors' emissions by 43% since 2005, but is facing a revamp to hit more ambitious EU climate change targets.

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