EU Proposes Easing Carbon Costs for Heavy Industry in Emissions Trading Overhaul

The European Commission on July 17, 2026 proposed easing the EU Emissions Trading System — the bloc's carbon-pricing mechanism since 2005 — by extending free pollution permits and slowing their phaseout for heavy industries. Ten member states argued the ETS raises energy costs and undercuts competitiveness. German Green MEP Michael Bloss called it a "licence to pollute for longer and at a lower cost." The proposal now heads to Parliament and Council.