EU Defangs Key Pillar of Its Climate Policy, Allowing More Pollution The European Union's revised Emissions Trading System (ETS) has been met with disappointment.
The updated rules, aimed at addressing economic strain on industries, have watered down the climate policy's ambition, allowing more greenhouse gas emissions than originally planned.
The linear reduction factor (LRF), which determines how pollution caps decrease annually, is the core issue in the ETS revision. Instead of reaching zero by 2039 as previously planned, the LRF will now drop to 1.