The European Commission is set to unveil an overhaul of the European Union's Emissions Trading System (EU ETS) on Friday, seeking to balance the bloc's long-term climate ambitions with mounting concerns that high carbon costs are hurting industrial competitiveness.
The proposed changes would allow industries to continue receiving free carbon permits for longer, slow the pace at which emissions limits tighten, and link financial support more closely to investments in clean technologies. The proposals will form the basis of negotiations between EU member states and the European Parliament over the next year.
