European Parliament backs reform of EU carbon market

The European Parliament voted on Tuesday to approve sweeping reforms to the European Union's carbon market, which are expected to hike the cost of polluting in Europe in the coming years and cut CO2 emissions faster.

The reforms would cut the supply of carbon permits in the market faster than planned, phase out free permits for industries by 2034 and gradually bring the shipping sector into the carbon market, starting in 2024.

The Parliament approved the changes with 413 votes in favour, 167 against and 57 abstentions.

The reforms were agreed by negotiators from the European Parliament and EU countries last year. They still need final approval from EU countries, due in the next few weeks, to enter into force.