European industries expected to win more time to emit carbon

{"text":[[{"start":6.3,"text":"European industries are expected to have won more time to keep emitting carbon, benefiting heavily polluting operations but undermining companies and countries that have already cut back their emissions."}],[{"start":17.15,"text":"The European Commission will lay out the review of its flagship emissions trading system on Friday, with the longer timetable for the scheme to be established as a result."}],[{"start":26.849999999999998,"text":"The Commission is also weighing adding carbon costs on flights leaving the bloc, as part of the review of the scheme which raises an annual total of about €40bn for the EU. It is also considering allowing more carbon permits for free on the condition that investments are made in Europe."}],[{"start":43.4,"text":"Under the ETS, businesses must pay for or use allowances for each tonne of carbon they emit, creating a financial incentive to reduce greenhouse gases."}],[{"start":53.55,"text":"At present, the scheme does not allow for the release of any new allowances to pollute until 2039, a longstanding matter of contention. Under the review, it would enable new allowances for emissions well into the 2040s."}],[{"start":67.89999999999999,"text":"The Commission is expected to relax the pressure on industry to cut carbon by slowing the squeeze on the cap on allowances issued under the scheme, people familiar with the matter said, while keeping the EU in line with its 2050 climate goal of net carbon neutrality."}],[{"start":83.94999999999999,"text":"This would involve an adjustment to the decrease in the level of carbon allowances available each year over time, known as the linear reduction factor, a measure closely watched by industry."}],[{"start":94.44999999999999,"text":"The rate would be adjusted from 4.4 per cent to a range of 3.5 to 3.9 per cent from 2031 to 2035, one person familiar with the plans said, before lowering it to around 2.2 per cent after 2036. A second person confirmed the proposed structure but said the details were subject to final approval."}],[{"start":115.89999999999999,"text":"Heavily polluting industries have lobbied against the present scheme, complaining that the cost of carbon is adding to the challenge of high energy prices in Europe, making them less competitive."}],[{"start":126.3,"text":"Member states which are reliant on fossil fuels, including Italy, Poland and other central and eastern European leaders, have also pushed for more leeway."}],[{"start":135.95,"text":"But climate leaders, such as the Nordic countries and Spain, had pushed for the rate to remain close to its present ceiling of 4.4 per cent, only relaxing later in the decade as emissions were phased out. "}],[{"start":148.6,"text":"Sweden and Finnish prime ministers warned Commission president Ursula von der Leyen this week that easing the system would require more efforts to reduce emissions from other sectors of Europe’s economy."}],[{"start":161.1,"text":"The EU has already moved to relax a ban on the sale of new combustion engine vehicles by 2035, and pushed back carbon prices on the heating and building sectors. "}],[{"start":171.45,"text":"Emissions from the sectors covered by the ETS have fallen by 46.8 per cent since its introduction in 2005, according to think-tank Bruegel. "}],[{"start":180.95,"text":"Much of the drop has been in the power sector, which has switched to renewable energy sources. Industries such as refineries, cement and steel have been laggards in adopting new investment to decarbonise, however."}],[{"start":null,"text":"

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