The EU Commission (EC) has unveiled a new proposal to overhaul the EU Emissions Trading System (ETS), a move many feared would weaken climate safeguards.

Under the old scheme, the linear reduction factor (LRF) – the annual drop in pollution caps – was set to hit 2039 with a 4.4 % cut. The updated plan lowers that to 2039 with only a 3.7 % reduction for the same period and further rolls back to 1.7 % per year after 2036, pushing emissions into the 2040s.

The EC also extends free carbon allowances for sectors covered by the carbon border tax until 2038 and permits the purchase of external offsets from 2036 onward, a change that could depress offset prices and enable higher pollution levels.

The WWF, led by Camille Maury, criticized the revision, questioning how the EU will hit the 2040 legal target. Meanwhile, the commission released an Electrification Action Plan aimed at accelerating the shift to green energy, though WWF’s Arnaud Van Dooren warned that electrification alone must be paired with deeper emissions cuts.