Tech & Science
EU Commission proposes to ease carbon market and extend free emission quotas
The European Commission unveiled proposals on July 17, 2026 to ease its Emissions Trading System (ETS), the EU's main industrial carbon cap mechanism introduced in 2005. The reforms would extend free emission quota distribution to industries through 2038 instead of 2034, conditional on companies investing in decarbonization. The annual rate of emissions cap reduction would slow down. The proposals require approval from EU member states and the European Parliament, a process that could take around one year.