EU · In discussion · Impact 76/100 · Expected in force 31 Dec 2028
The EU wants to expand its carbon-pricing system, which makes polluting industries buy permits for the greenhouse gases they release, to also cover waste incineration plants, smaller ships, smaller planes and more long-haul flights leaving Europe. It would also stretch the scheme out to 2040 with a tougher 90% emissions-cut target, while giving heavy industry extra free permits if they invest in cleaner production. This is still a proposal being negotiated by EU governments and the European Parliament, not a law yet, and if agreed it is expected to start taking effect from the end of 2028.
Who this affects: air passengers on longer flights, people whose rubbish is burned for energy, small ship and ferry operators, workers in heavy industry
No. It is still a proposal being discussed by EU governments and the European Parliament, so nothing has changed yet. If agreed, it is expected to start taking effect by the end of 2028.
The proposal would bring smaller aircraft and more long-haul flights leaving the EEA, up to 5,000km, into the carbon market for four years from 2029, which could add to costs, though the text does not set an exact figure.
Possibly. The plan would bring municipal waste incineration plants into the carbon market for the first time, which could affect the cost of burning rubbish for energy.
Companies covered by the scheme, such as big industrial plants, shipping firms, airlines and now waste incinerators, buy and trade the permits, not individual people directly, though the costs can be passed on through prices.
Official title: EU Emissions Trading System and market stability reserve: competitiveness and cost-effective decarbonisation (COM(2026) 616)
Source: official record