European manufacturers call for reform of the EU ETS

The carbon market and how it works will be on the agenda for discussions among European leaders meeting at Alden Biesen Castle in Belgium for an informal summit on European competitiveness on 12 February. With a review of the EU ETS scheduled for the third quarter, European manufacturers and some Member State leaders are calling on the European Commission to continue allocating free emission allowances to emitting manufacturers beyond 2034. According to some sources, the Commission will confirm the abolition of free allowances by 2034 but will allow manufacturers to cover only part of their emissions. Another option would be to continue granting free allowances beyond 2034, but to make the granting of free allowances to manufacturers conditional on them making decarbonisation investments.