Sweden vows to fight weaker EU carbon market

Sweden's government says it will oppose a European Commission proposal to slow the reduction of emissions allowances in the EU carbon market, warning that weaker rules would reward laggards and shift more of the climate burden onto other sectors.

The Commission proposed a targeted revision of the Emissions Trading System on Friday. According to the Swedish government, it would lower the annual reduction factor from 4.4% to 3.7% in 2031–35 and 1.7% from 2036, extend free allowances for established industries until 2038 and permit international credits from 2036.

Climate Minister Romina Pourmokhtari said Sweden would defend a predictable carbon price for companies that have invested in cleaner production. Sweden has joined Denmark, Finland, Luxembourg, the Netherlands, Portugal and Spain in calling for a reduction path consistent with the EU's 2040 climate target; the government says Germany has taken a similar position.

The Commission says its package is intended to support competitiveness and investment while updating rules for industry, aviation and shipping and gradually bringing municipal waste incineration into the system.

The proposal is not EU law. The European Parliament and member states must negotiate and agree a final text before any revised rules take effect.

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