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

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)