Plans to reform the EU’s trading scheme for cutting carbon emissions have been approved by Member States.
The overhaul of the Emissions Trading System (ETS) comes just two weeks after the European Parliament voted in favour of a new directive.
The EU ETS works as a ‘cap and trade’ system and makes businesses pay for producing greenhouse gas emissions.
Some of the proposals agreed include reducing the number of carbon credits – or emissions allowances – by 2.2% every year, cancelling 800 million allowances and setting up two funds to upgrade energy systems and provide support for renewables and carbon capture and storage projects.
Jose A. Herrara, Malta’s Environment Minister and President of the European Council said: “This is important for us, for our planet and for future generations. The Paris Agreement was a landmark achievement but we need to put words into action.
“A better functioning ETS will reduce emissions further. The EU is delivering on its promise because it cares about a better future for all.”