The European Parliament’s three biggest political groups, backed by the Greens, have reached a compromise deal on the reform of the EU’s emissions trading scheme ahead of a decisive vote in plenary next week.

The agreement, reached on Tuesday evening (14 June) by the centre-right European People’s Party (EPP), the Socialists and Democrats (S&D), and the centrist Renew Europe (RE), was presented to the press the following day.

Its main elements are:

• Emissions reductions from industries covered by the ETS will reach 63% by 2030 compared to 2005 levels. This is up from 61% under the Commission’s original proposal.

• A phase-out of free ETS allowances for industry between 2027 and 31 December 2032. (Commission proposal: 2026-2035).

Guest post from EurActiv