DUBLIN — Conditions attached to free carbon allowances for industry under the Emissions Trading System are emerging as the biggest point of friction among member countries, according to three EU diplomats.
EU environment and climate ministers met in Dublin on Friday to discuss the European Commission’s proposal to loosen carbon market rules to help the bloc’s heavy industry. It was the first ministerial meeting since the proposal was released, with clashes expected between 10 countries pushing to weaken the trajectory of the ETS, and seven others determined to preserve its climate ambitions.
Part of the EU executive’s recent proposal puts controls on free carbon allowances, only releasing 80 percent to companies after they provide a decarbonization plan and the final 20 percent after proof of investment. Some countries have applauded the commission for tightly tying money to going green, while others say it will force more businesses to flee the bloc for jurisdictions without carbon pricing.
On Friday, conditionalities again became a sticking point among ministers at the meeting in Dublin.
