UK Markets close in 1 hr 49 mins

EU drafts plan to tighten carbon market, expand it to shipping, cars, heating

·1-min read
FILE PHOTO: FILE PHOTO: A cargo ship is moored at the Piraeus Container Terminal, near Athens

BRUSSELS (Reuters) - The European Union wants to overhaul its carbon market to cut planet-warming emissions faster and put a price on pollution from shipping, road transport and heating systems in buildings, according to a draft document seen by Reuters on Wednesday.

The draft proposal, due to be published on July 14, said the bloc's executive European Commission would propose a one-off reduction in the supply of CO2 permits. The amount of permits entering the EU carbon market each year would also decrease at a faster rate, starting the year after the reforms apply.

Emissions from intra-EU shipping and voyages into Europe would be added to the existing EU carbon market, while a new, separate emissions trading system would be launched for the transport sector and heating systems in buildings, it said.

(Reporting by Kate Abnett, Editing by Gabriela Baczynska)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting