EU to Make CO2 Market ‘Fit for Future,’ Climate Chief Says

The European Union will use an upcoming reform of its carbon market to ensure that the extra support for heavy-emitting industries is repaid through a commitment to investing in the region’s green transition.

Wopke Hoekstra, the EU’s climate chief, said that extra flexibilities for industry in July’s review of the Emissions Trading System, the key pillar of the bloc’s net zero ambition, would come with a “quid pro quo.” Member states will also need to ensure that proceeds from the system are spent on decarbonizing the hardest-to-abate sectors like chemicals, steel, cement and shipping, he added.