EU Mulls Free Carbon Allowance Rules for Heavy Industry Through 2030

Brussels is pushing climate targets, but critics say the framework has become an ‘existential risk for many European strategic industrial sectors.’

A German worker pours molten iron into a mold at the Siempelkamp Giesserei foundry in Krefeld, Germany, on April 21, 2022. Sascha Schuermann/Getty Images

The European Union is preparing to update the rules that determine how many free carbon allowances heavy industries receive through 2030, as Brussels tries to keep its flagship climate initiative moving amid growing pressure on industrial competitiveness.

The European Commission said on May 11 that it had launched a consultation on updated benchmark values for the EU Emissions Trading System (ETS) for 2026 to 2030.