Luxembourg, 25 April 2023 (dpa/MIA) - Climate protection laws considered key in reaching the European Union's emission targets received their final backing on Tuesday from the bloc's member states.

The reform of the EU's carbon pricing scheme (ETS), a new CO2 tariff and a social fund are part of the EU's climate goals to reduce greenhouse gas emission by at least 55% by 2030 compared to 1990-levels and become climate-neutral by 2050.

Under the reform, the number of purchasable emissions permits for industries will be reduced more quickly than previously planned to incentivize the reduction or avoidance of greenhouse gas emissions.

Free permits, including for the aviation sector, will be phased out.

Shipping, road transport and buildings are among the sectors for which a separate carbon-trading system has been set up and they will have to pay for their climate impact.

The carbon tariff aims to tackle so-called carbon leakage when manufacturers move production to countries with laxer emission constraints.

Importers of carbon-intensive products, like certain metals or electricity, will pay the difference between any carbon price paid in the production country and the EU's carbon price.

Ministers also backed a fund, worth about €86 billion ($94 billion), to support consumers and small businesses as the EU transitions from fossil fuels to renewable energy.

The bills will enter into force once the legal text is published and become applicable after different implementation periods.

Photo: EPA