EU to Allocate More Free Carbon Permits to Industry

The European Commission is set to propose granting about €4 billion ($4.7 billion) more of free emission permits to the industries covered by the bloc’s carbon market, addressing concerns by some governments and manufacturers over the region’s declining competitiveness.

The commission, the European Union’s regulatory arm, will opt to employ a methodology that allows more flexibility when calculating benchmarks that determine the number of free allowances to be allocated in 2026-2030, according to a document shared with member states and seen by Bloomberg News.