Daily Management Review

Rules For EU Carbon Permit Gets Delayed


EU will finalise the free permits’ benchmark for the period of “2021-2025” in February.

The European Commission had plans of finishing the regulations on “free carbon permits” in the coming five year, while last ween it informed that the ruled for the industries to calculate the same will be confirmed in February. The carbon market seen in the EU makes it compulsory for the polluters to “buy permits to cover their emissions” while giving a margin for “free permit” so as to retain companies in Europe.
According to Reuters report:
“Draft versions of the rules, seen by Reuters, suggest most industries would see free credits cut by the highest possible rate over the next five years, as the EU seeks to curb pollution and meet climate goals. That could cost the biggest polluters millions of euros”.
As per reports, EU will finalise the free permits’ benchmark for the period of “2021-2025” in February as it is still in the process of “verifying data from the 11,000 factories and power plants covered by the carbon market”. Following the completion of the said process which is scheduled for this year, the EU will receive information on the number of “free permits” offered by the countries.
In case, the Commission feels that countries are giving out “too many free permits”, it will step in to correct the same whereby “curbing all factories’ free permits by the same amount, before approving the final amount in the second quarter of 2021”. According to a statement of the Commission:
“The distribution of free allowances in 2021 will take place after this decision is adopted”.