The Strategist

EU Council passes legislation to reduce sales of carbon dioxide certificates

04/26/2023 - 09:50

The Council of the European Union established a number of rules as part of the Fit for 55 in 2030 climate initiative, which aims to drastically cut greenhouse gas emissions by 2030.

The EU has specifically passed legislation to limit the sale of CO2 certifications for goods brought into the EU.

The EU Council approved expected 62% reduction in emissions from 2005 levels by 2030. The measures also provide for elimination of free emission allowances for regional businesses between 2026 and 2034. By 2026, free emission limits will be reduced by 2.5 percent, and by 2034, they would be completely eliminated.

To do this, the European Union will reduce emission limits once, by an additional 27 million tons by 2026 and 90 million tons of CO2 equivalent by 2024. The yearly quota reduction is anticipated to reach 4.3% in 2024–2027 and 4.4% in 2028–2030.