The European Union approved tighter emission caps on energy and manufacturing companies as of 2013, bolstering the world’s biggest greenhouse-gas market in a bid to spur the U.S. and China to help fight climate change.
The European Parliament voted to reduce annual carbon- dioxide allowances for electricity, steel, paper and other industries now in the EU emissions-trading system by 11 percent on average in 2013-2020 from 2008-2012. The EU assembly also endorsed adding the aluminum and chemical industries to the system, which requires companies that exceed their emission quotas to buy permits from businesses that emit less.
In addition, the Parliament approved allocating fewer of the allowances that make up the shrinking quotas for free, requiring some power producers to buy their whole allotment as of 2013 and other industries to face 20 percent auctioning that year. The overhaul aims to make emissions tied to fossil fuels more costly and help the EU meet a goal of reducing greenhouse gases by 20 percent in 2020 compared with 1990.