The European Parliament rejects a reform of the EU ETS

The European Parliament has rejected a reform proposal to expand and revise the European Union Emissions Trading Scheme (EU ETS), which aimed to reduce greenhouse gas emissions in sectors covered by the ETS (chemical industry, power generation, paper sector, cement, steel) in 2030 by 63% compared to 2005 levels. Consequently, related votes to create the Carbon Border Adjustment Mechanism (CBAM, i.e. a carbon tax for imported commodities and electricity), and the Social Climate Fund, which would use revenues from the EU ETS to assist the vulnerable population, were postponed until further notice. However, members of Parliament have approved the extension of the EU ETS to the aviation and maritime sector. They also endorsed the creation of a second carbon market for heavy goods vehicles and office buildings, reducing the scope of the proposal that included transport and private housing. 

The European Parliament has also approved the European Commission's proposal to reach net-zero emission mobility by 2035 with revised CO₂ emissions standards for new passenger cars and light commercial vehicles. Intermediate emissions reduction targets for 2030 would be set at 55% for cars and 50% for vans. Members of parliament have also endorsed an increase in the EU 2030 target for net greenhouse gas (GHG) removals in the land use, land-use change and forestry sectors (LULUCF) to 310 MtCO_2eq, de facto raising the EU’s 2030 greenhouse gas reduction target to 57 %. The European Union aims to achieve a net emissions reduction of at least 55% by 2030 compared to 1990 levels and to reach carbon neutrality by 2050.