European Union member states and parliamentarians have announced an agreement to reform the bloc's carbon market, the central component of its efforts to reduce emissions and invest in climate-friendly technologies, Trend reports citing Euronews.
The deal aims to accelerate emissions cuts, phase out free allowances to industries and target fuel emissions from the building and road transport sectors.
The EU Emissions Trading System (ETS) allows electricity producers and industries with high energy demands, such as steel and cement, to purchase "free allowances" to cover their carbon emissions under a "polluter pays" principle.
The quotas are intended to decrease over time to encourage these industries to emit less and invest in greener technologies as part of the EU's goal of achieving carbon neutrality.
The deal means emissions in ETS sectors must be cut by 62% by 2030 based on 2005 levels, up from a previous goal of 43%.