Top Posts
WHO unveils an ambitious blueprint for action on...
New report shows nearly 900 million poor people...
Lagos to Host 2025 International Climate Change Summit
New study shows overheating world will add 57...
NAICOM urges W’African insurers to invest in climate...
Climate change: Nigeria, development partners launch Net Zero...
Nigeria launches net zero project to fight climate...
CSOs reject water privatisation, seek more investment to...
NAICOM speaks on impact of climate change
NDDC, others push for climate change awareness in...
EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World
World

EU gives big polluters €100bn in free carbon permits

by Segun Ogunlade December 1, 2022
written by Segun Ogunlade December 1, 2022
777

An analysis by the WWF shows that the European Union has given big polluting industries almost €100bn (£86bn) in free carbon permits in the last nine years, “in direct contradiction with the polluter pays principle”.

Free pollution permits worth €98.5bn were given to energy-intensive sectors including steel, cement, chemicals and aviation from 2013-21 which is more than the €88.5bn that the EU’s emissions trading scheme (ETS) charged polluters, mostly coal and gas power stations, for their CO2 emissions.

The WWF analysis also showed that the free permits did not come with climate conditions attached, such as increasing energy efficiency and some polluters were also able to make billions in windfall profits by selling the permits they did not use.

Read also: NACGRAB partners Crop Trust to address food security, climate change challenges

The European Commission describes the ETS as “a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively”. The number of carbon emissions permits is reduced annually, which in recent years has pushed up the permit price and incentivised companies to reduce their emissions.

Although Carbon emissions covered by the ETS have fallen by 37% since it began in 2005, largely thanks to the growth of renewable energy, the WWF said that the free allowances had undermined the ETS and emissions from heavy industry had not fallen.

The analysis also found that at least a third of the revenue raised from the ETS was not spent on climate action, rising to almost half if projects to increase the efficiency of burning fossil fuels were excluded.

Reform of the ETS is being negotiated between the European Parliament, Council and Commission. Potential dates for the end of free allowances range from 2032 to 2036. The free allowances were originally justified to tackle the potential risk that industrial companies might move production outside the EU to avoid carbon taxes, but the WWF said there had been no evidence for this.

Story was adapted from the Guardian.

€100bnCarbon permitsEUPolluters
0 comment 0 FacebookTwitterPinterestEmail
admineconai

previous post
NACGRAB partners Crop Trust to address food security, climate change challenges
next post
Climate Change: FG pledges to implement flexible renewable energy scheme

Related Posts

WHO unveils an ambitious blueprint for action on...

October 20, 2025

New report shows nearly 900 million poor people...

October 20, 2025

New study shows overheating world will add 57...

October 16, 2025

Heaviest monsoon in a decade kills 458 people...

October 9, 2025

Council releases first fully electric bin lorry

October 9, 2025

Study shows US asthma inhalers produce same emissions...

October 7, 2025

Pope Leo hits out at climate change critics

October 3, 2025

Protesters seek $5tr payment from fossil fuel companies

October 1, 2025

UN official says climate change displaces up to...

September 30, 2025

UN ends high-level week with calls for peace,...

September 30, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Bloglovin
  • Vimeo

@2021 - All Right Reserved. Designed and Developed by Eco-Nai+

EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World