Starting in 2036, the Commission will give industry the option of buying carbon credits from outside the EU to offset their emissions.Jon Cherry/Getty Images

EU loosens carbon market rules to let industry pollute for longer – POLITICO

17 Jul 2026, 10:16 by Ben Makuch · POLITICO

BRUSSELS — The European Commission has confirmed it will allow EU industry to continue emitting planet-warming gases well into the 2040s and offer more free pollution permits for longer, as part of an overhaul of the bloc's Emissions Trading System.

The Commission released the long-awaited revision on Friday after a full night of talks, following internal division over the details of the sweeping reforms to the EU's most powerful tool for tackling climate change.

The final proposal represents a significant watering down of ambition, and is likely to spark a fight in Parliament and among member countries between those who want more concessions for industry, and those who want to accelerate the path to climate neutrality.