Dutch agencies warn EU emissions trading relaxation backfires

Dutch policy agencies are highly critical of European Commission plans to relax the EU emissions trading system. Researchers from CPB and PBL calculated the proposals would significantly increase CO2 emissions while barely helping industry. The plan, proposed by Climate Commissioner Wopke Hoekstra, aims to lower costs for companies by releasing more emission rights and ending the automatic cancellation of surplus permits. However, the analysis shows emissions would rise by 33 percent by 2050, while savings on energy bills would be minimal. The agencies also warn that removing the cancellation rule would make the carbon market more unstable. They note their study only examined supply-side changes, excluding other plan elements like expanding the system to new sectors and a €100 billion investment fund.