EU Carbon Market Overhaul: Key Changes and Implications for the 2040s

The European Commission has announced that EU industries will be permitted to emit CO₂ emissions through the 2040s as part of a major revision to the bloc’s Emissions Trading System (ETS). The reform introduces, for the first time, the option for sectors to purchase carbon credits from international markets starting in 2036, potentially reducing carbon costs and offering alternative compliance pathways if EU-issued allowances are insufficient.

Michael Bloss, a member of the European Parliament representing the Greens/European Free Alliance group, and Wijnand Stoefs, an expert at the non-profit research organization Carbon Market Watch, have highlighted concerns over the long-term environmental impact of extended emission allowances and the risks of relying on external carbon markets to meet climate targets.

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