EU proposes slowing down cuts to carbon emissions for businesses

The European Union has unveiled proposals that would slow cuts to businesses' greenhouse gas emissions limits, as part of a major climate policy overhaul.The reforms would relax the rules of the bloc's emissions trading system (ETS) to give businesses more time to reduce their carbon output than previously planned. The changes would mean some industries could obtain emission allowances until 2038 instead of 2034, if they commit to investing in decarbonisation efforts.The proposals still need to be approved by EU countries and lawmakers - a process that could take a year. "We are adopting a more business-friendly and, may I say so, savvy approach," said EU climate commissioner Wopke Hoekstra.The European Commission, which develops legislation for the EU's 27 member states, said the changes would ensure the ETS was aligned with the EU's goal to reduce carbon emissions by 90% by 2040, compared with 1990 levels. The ETS, which was introduced in 2005, is the EU's main tool for curbing greenhouse gases. But it has come under criticism from a number of member states, with Italy in particular condemning the trading scheme as a de facto tax that has helped keep energy prices artificially high.