EU plans more free emission permits for industry and pushes ETS2 rollout

The European Commission announced it will accelerate the reform of the EU Emissions Trading System (ETS) by issuing additional free emission certificates to industry starting in January 2027. The "quick fix" aims to ease the sector’s costs while linking the benefit to investments in decarbonisation, with firms required to spend 50‑70 % of the saved amount on transformation projects.

At the same time, the European ETS2 Action Alliance – a coalition of over 60 companies, NGOs, think‑tanks and other organisations – called on the Commission and EU leaders to implement a separate ETS for buildings and road transport (ETS2) quickly. The alliance argues that ETS2 would give businesses price certainty, stimulate energy‑efficiency and clean‑technology investment, and reduce dependence on volatile fossil‑fuel markets.