"EU to Discuss Carbon Trading System for Buildings and Transport in May"

Photo by AFP News Agency

[Asia Economy Reporter Yujin Cho] The European Union (EU) is entering detailed discussions on setting carbon reduction targets not only for energy production and industrial sectors but also for buildings and transportation sectors.

EU leaders will meet in Brussels on May 25 to discuss the introduction of an emissions trading system for the building and transportation sectors as a concrete measure to achieve the goal of reducing carbon dioxide emissions by 55% compared to 1990 levels by 2030, Bloomberg reported on the 25th (local time).

The news agency cited a document distributed by the European Commission, the EU's executive body, to the foreign ministries of EU member states, stating that it will address creating an incentive system to prevent additional carbon emissions in the building and road transport sectors.

According to the document, the Commission plans to specify detailed requirements for strict carbon emission standards and energy efficiency achievements for new vehicles and buildings, in addition to cost considerations.

This discussion is expected to lead to a binding agreement, which will likely increase the cost burden on the construction and automotive industries.

The EU announced at the climate summit held virtually on the 22nd and 23rd that it would introduce emissions trading in the building and transportation sectors as well.

The EU has already set the most ambitious reduction targets among developed countries and is leading carbon emission reductions by expressing willingness to further reduce emissions if other countries present targets comparable to the EU's.

The EU operates the world's largest carbon emissions trading market, accounting for 40% of global emissions. The EU carbon emission allowance price soared to a record high of 47 euros per ton last week. After double-digit increases last year, carbon allowance prices continue to rise this year.

Market analysts expect the carbon allowance prices of the 27 countries to continue rising this year as carbon reduction becomes a global issue. Morgan Stanley has forecasted that the carbon allowance price will exceed 60 euros by June due to changes in the emissions trading system.

This content was produced with the assistance of AI translation services.