European Commission Cuts Free CO2 Permits for Industries
The European Commission has confirmed its decision to reduce the allocation of free CO2 emission permits for industries, a move expected to cost EU businesses billions of euros. This change is part of ongoing reforms to the EU's Emissions Trading System, which currently sees permits trading at approximately €75 per ton of carbon dioxide. The Commission's action comes amid pressure from heavy industry and national governments advocating for adjustments to alleviate rising carbon costs.
EU Introduces Carbon Pricing Measures for Imports
The European Union is implementing measures to control surging carbon prices through updates to the EU Emissions Trading System (ETS) and the introduction of the Carbon Border Adjustment Mechanism (CBAM), which will take effect on January 1, 2026. Importers of goods subject to CBAM must apply for authorized declarant status if they import more than 50 tonnes, and will be required to purchase CBAM certificates based on the auction price of EU ETS allowances. This system aims to ensure that emissions embedded in imports are accounted for, with provisions for deducting previously paid carbon prices during production.
France to boost missile and drone stocks by 400 percent
France plans to increase its missile and drone stocks by up to 400 percent by 2030, as outlined in a draft military planning law that allocates €8.5 billion for these enhancements. Prime Minister Sébastien Lecornu emphasized the urgent need for munitions amid ongoing conflicts and European security concerns, with projected defense spending rising to €76.3 billion by 2030. Additionally, France is considering the development of a new tank to succeed the Leclerc, although no expansion of its armed forces is planned.
