EU plans slower CO2 cuts and more free permits in ETS overhaul

The European Commission is planning to slow the pace of CO2 cuts and extend free permit allocations for industry in a carbon market overhaul, per Reuters reporting on 8 July 2026. The changes would ease near-term compliance costs for industrial emitters but risk softening the EU ETS price signal that underpins low-carbon investment decisions across the power sector.

A separate Reuters story published 9 July flags industry concern that EU restrictions on Chinese solar and wind components could stall renewables build in lower-income member states and partner countries. No specific capacity figures were provided in the headline items, but the warning adds a supply-chain dimension to the ongoing EU clean-energy policy debate.

In GB, Ofgem published two consultations on 9 July: one on notice period options for distribution network charges during the transition to the ED3 price control, and one outlining a temporary approach to updating the unidentified gas allowance in the retail price cap for Q4 2026. Both are open for stakeholder input.