EU emissions‑trading reform draws criticism from Finnish leaders

The European Commission has presented a proposal to overhaul the EU emissions‑trading system (ETS) for the 2030s. The draft keeps the market‑based core of the scheme but slows the pace at which the total number of allowances is reduced, extends free allocations to sectors such as aviation, maritime transport and waste incineration, and proposes conditional free‑allocation periods through 2038.

Finnish Green Left MEP Li Andersson warned that the changes would "weaken EU climate policy in the middle of deadly heatwaves," arguing that the plan favours polluting industry and undermines Finland’s competitiveness. Metsäteollisuus ry, representing Finland’s forest industry, welcomed the acknowledgement of industrial carbon‑risk but said the proposal leaves the most low‑emission plants outside free allocations, creating a disincentive for further cuts. Technology sector spokesman Teppo Säkkinen said the ETS remains a crucial tool for long‑term investment certainty, but expressed concern over the slower allowance‑reduction trajectory.

The proposal now moves to the EU Council and European Parliament, where negotiations are expected to be intense as member states and political groups vie over the balance between climate ambition and industrial competitiveness.