The European Commission announced in Brussels on Monday that it aims to issue greenhouse gas emission certificates to industry more generously than in the past.
Companies will continue to receive certificates for around 75% of their greenhouse gas emissions free of charge, while a new calculation method will ensure that indirect emissions from electricity consumption are taken into account for the period 2026-30, it said.
This will result in benefits to industry amounting to around €4 billion ($4.7 billion) over the period, according to the commission.
Germany's VCI chemicals sector association expressed criticism of continuing weaknesses and lack of clarity in the method, "even if the intensified measures originally planned have been softened."
The European Union is relying on its Emissions Trading System (ETS) set up in 2005 to cut greenhouse gas emissions. It requires certain companies to procure certificates for emissions of climate-damaging gases such as carbon dioxide.
The quantity of certificates declines constantly, making them more expensive and incentivizing investment in emission reduction.
The new proposals are now up for discussion by the member states, some of which have criticized the system on competitiveness grounds.
The commission plans to present a major re-evaluation of the ETS in the coming months.
