MEPs reach new deal on ETS reform

Cap reduction stays at diluted level but free allowances phased out by 2032

MEPs in the European Parliament’s environment committee have reached a new deal on the reform of the EU emissions trading system (ETS) and the introduction of the carbon border adjustment mechanism (CBAM), which they say should receive approval by the Parliament as a whole in a vote on 22 June. Last week, the Parliament voted against a reform package for the ETS, sending the law back to the committee stage after it was heavily amended. While there was consensus between political groups on many issues in the report—such as the inclusion in the scheme of the maritime, road transport and building sectors—some issues proved more controversial, in particular the rate at which the ETS emissions ca