EU member states and parliamentarians on Sunday reached a political deal to reform the bloc's carbon market, the key policy of its ambitions to cut emissions and invest in climate-friendly technologies.
The deal aims to accelerate emissions reduction, phase out free CO2 permits to industries and targets fuel emissions from the building and road transport sectors, according to a European Parliament statement.
Under the EU Emissions Trading System (ETS), electricity producers and industries with high energy demand such as steel and cement can purchase "free allowances" to cover their carbon emissions under a "polluter pays" principle.