The European Commission passed a proposal to reform the EU carbon emissions trading system after 2030, including slowing down the annual reduction of carbon quotas and extending the period for issuing free quotas. The EU proposal sets an annual reduction rate of 3.7% for the upper limit of carbon emissions from 2031-2035; from 2036 to 1.7%. For industries covered by the carbon border adjustment mechanism, the phasing out period of free quotas will be extended until 2037. After 2030, the issuance of free quotas will have additional conditions: enterprises must publish a decarbonization investment plan approved by the board of directors, and can receive 80% of the free quota each year; the remaining 20% will be distributed after the investment plan is implemented.

The European Commission passed a proposal to reform the EU carbon emissions trading system after 2030, including slowing down the annual reduction of carbon quotas and extending the period for issuing free quotas. The EU proposal sets an annual reduction rate of 3.7% for the upper limit of carbon emissions from 2031-2035; from 2036 to 1.7%. For industries covered by the carbon border adjustment mechanism, the phasing out period of free quotas will be extended until 2037. After 2030, the issuance of free quotas will have additional conditions: enterprises must publish a decarbonization investment plan approved by the board of directors, and can receive 80% of the free quota each year; the remaining 20% will be distributed after the investment plan is implemented.