During the plenary session of this week, MEPs adopted the reform of the EU’s Emissions Trading System including for aviation and maritime, the Carbon Border Adjustment Mechanism and a new Social Climate fund.
The Parliament gave the final approval to five new laws, following the agreements reached with EU countries at the end of 2022 as part of the “Fit for 55 in 2030 package”, which is the EU’s plan to reduce greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels.
Three are the results from this week's parliamentary agreement:
Emissions Trading System reform
The reform of the Emissions Trading System (ETS) was adopted, increasing the EU's climate ambitions calling for emissions reduction. It plans to cut greenhouse gas (GHG) emissions in the ETS by 62% by 2030 compared to 2005-levels. It also phases out free allowances to companies from 2026 until 2034 and creates a separate new ETS II for road transport fuels and building fuels, in order to put a price on GHG emissions from these sectors in 2027.
