The dust has settled on EU carbon tariffs and EU carbon market proposals

On the evening of December 17, MEPs and EU governments agreed to reform the EU Carbon Market (EU ETS) to accelerate the reduction of industrial emissions and increase investment
in climate-friendly technologies.
At the same time, the final details of the timing of the implementation of the CBAM (EU Carbon Tariff) were settled
with the EU ETS negotiations.
In terms of the ultimate target, emissions from the EU ETS covered sectors must be reduced by 62% by 2030, higher than the 61% proposed in the Commission's original proposal, but lower than the 63% proposed in the European Parliament Amendment, a compromise option
.
To meet the 62% target, the number of EU-wide allowances would be reduced by 90 million tonnes of CO2e in one lump sum in 2024, 27 million tonnes in 2026, and 4.
3% per year from 2024-2027 and 4.
4%
in 2028-30.
In terms of free quota withdrawal time, the existing free quota will be reduced from 2026 until 2034 when all free quotas are withdrawn
.
The annual reduction plans are: 2026: 2.
5%, 2027: 5%, 2028: 10%, 2029: 22.
5%, 2030: 48.
5%, 2031: 61%, 2032: 73.
5%, 2033: 86%, 2034: 100%.