EU Proposes Slowing Emissions Cap Cuts in Major ETS Overhaul

The European Commission proposed cutting the ETS emissions cap reduction rate from 4.3% to 3.7% in 2031, then to 1.7% by 2036. The ETS — the EU's carbon market covering power plants, factories, airlines, and shipping since 2005 — is its main climate tool. Climate commissioner Hoekstra called it "more business-friendly." Member states and parliament must still approve, which could take a year.