The European agreement: the polluter pays. A risky revolution

Over the weekend, the negotiators of the Council and the European Parliament reached an agreement for the reform of the ETS emissions trading system, one of the pillars of the “Fit for 55” package which must allow the EU to cut emissions by 55 percent by 2030. The ETS works on the principle that whoever pollutes the most with CO2 pays the most. According to the agreement, the sectors covered by the current ETS mechanism will have to reduce emissions by 62 percent compared to 2005 levels. The agreement provides for the gradual exit from free permits for energy-intensive sectors covered by the carbon tax at the border.