EU: carbon agreement reduces emissions by 62% by 2030

Emissions will be cut and new CO2 costs for fuels used in road transport and buildings will be introduced from 2027.

Under an agreement from European Union member states and the European Parliament, the EU carbon market will cut emissions by 62% from 2005 levels by 2030.

This plan will eliminate 90 million annual carbon emission permits by 2024, 27 million by 2026 and reduce the rate of carbon emission permits to 4.3% from 2024 – 2027 and 4.4% from 2028 – 2030. The EU will phase out the free carbon emission permits currently issued to industries from 2026 – 2034.

These licenses will be canceled when the EU imposes carbon border tariffs designed to prevent intra-bloc companies from competing with foreign rivals.

This new agreement makes the EU the first jurisdiction to introduce a price on emissions for the maritime sector. The EU also agreed to launch a new carbon market for cars and buildings by 2027.

To reform the bloc’s carbon market, a new 65 billion Euro socio-climate fund will be established to support member countries develop energy-saving solutions including home insulation, heat pumps, heating and cooling. Install solar panels, increase the number of vehicles using electricity. EU member states also dedicate all emissions trading revenue to climate and energy-related projects and addressing social issues during the transition.

According to VTV.VN