EMEA > Compliance Markets & Taxes > UPDATE – EU reviewing free ETS allocation rules, as senior lawmaker says phaseout should slow pre-2030

UPDATE – EU reviewing free ETS allocation rules, as senior lawmaker says phaseout should slow pre-2030

Published 11:29 on February 10, 2026 / Last updated at 19:28 on February 10, 2026 / , and / EMEA (Compliance Markets & Taxes, Europe)

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The European Union is weighing major changes to its system of free CO2 permits for industry as part of a broader overhaul of its carbon market, according to an internal document seen by Reuters, as a key EU lawmaker told reporters on Tuesday that the phaseout of handouts could be slowed from as early as the end of the decade, also proposing a future easing of the Linear Reduction Factor (LRF).
The European Union is weighing major changes to its system of free CO2 permits for industry as part of a broader overhaul of its carbon market, according to an internal document seen by Reuters, as a key EU lawmaker told reporters on Tuesday that the phaseout of handouts could be slowed from as early as the end of the decade, also proposing a future easing of the Linear Reduction Factor (LRF).


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