EU Proposes Cutting Emissions Reduction Pace by Over 60%

On July 17, 2026, the European Commission proposed lowering the ETS annual emissions reduction rate from 4.4% to 1.7% after 2036 — under 39% of the prior pace. The EU's legally binding 2040 target requires 90% cuts from 1990 levels. The Commission has not explained how it will close the resulting gap.