European institutions reach provisional compromise on EU ETS reform
On 9 November, the Council, European Parliament and European Commission have reached a provisional political deal on reforming the EU Emission Trading Scheme (EU ETS).
The deal includes an increase of free allowances for industry, which increases the likelihood that the best performing companies will receive the free allocation they need. This is one of the core principles of the EU ETS and Cefic position. The provisional agreement has also rejected a tiered approach to free allocations, which would have significantly impacted many sectors by causing a severe under-allocation as a result of preferential treatment for a select few.