{"text":[[{"start":8.15,"text":"Six member states have urged the EU to shield their heavy industries from carbon costs, warning that the bloc’s climate policy must adapt to geopolitical crises and “exceptionally high” energy prices."}],[{"start":21.65,"text":"In a letter seen by the FT, the Czech Republic, Bulgaria, Poland, Romania, Greece and Slovakia have called for an increase of permits for industries to emit carbon under the bloc’s emissions trading system."}],[{"start":34.3,"text":"Heavy industrial companies that were seeking to transition to cleaner output should receive extra free carbon permits, the countries said. They argued that mid- and lower-income member states were particularly hurt by the energy crisis and should be given preference."}],[{"start":48.3,"text":"The demands are the latest pressure on the emissions trading system, which seeks to drive green investment by requiring companies to buy or hold allowances to cover their CO₂ emissions."}],[{"start":59,"text":"The system gradually decreases the number of free allowances industries receive, forcing them instead to buy and trade permits, which creates a financial incentive to decarbonise."}],[{"start":69.75,"text":"The system has been subject to scrutiny from member states with more polluting industries, as it has added to increased energy costs for their industries at a time of high prices because of the war in the Middle East. "}],[{"start":82.5,"text":"Italy led calls to suspend the system after the outbreak of war in Iran, backed by the signatories of the latest letter. While that pressure has since dissipated, several member states want to see the ETS weakened substantially in an upcoming review."}],[{"start":97.25,"text":"Member states in the east and south are among those struggling most due to historic reliance on dirtier forms of energy."}],[{"start":105.55,"text":"But more affluent member states in northern and western Europe are more advanced in decarbonising and continue to support an ambitious policy."}],[{"start":114.25,"text":"The European Commission is currently reviewing the ETS to extend the policy to reach carbon neutrality by 2050."}],[{"start":122.75,"text":"Officials plan to give more free allowances for industries but have said this would require more “conditionality” for industries to report how they were reinvesting in decarbonisation. "}],[{"start":133.1,"text":"The six member states agreed that “additional free allocation should be granted to energy-intensive industrial operators who commit to verifiable emission reduction plans”. But they wanted to “fast-track” this process so that it came into place before 2030, a diplomat said."}],[{"start":149.1,"text":"The letter also comes after the commission revised the basis by which different sectors receive free allowances. This proposal increased free allowances by an additional €4bn from 2026-30 but cut the amount back drastically for certain sectors. "}],[{"start":166.2,"text":"In their letter, the member states criticised a decision to cut the amount of allowances for the heat and fuel sectors — key for heavy industry — by 50 per cent. "}],[{"start":176,"text":"“This adjustment alone could inadequately increase the effective carbon costs borne by a broad range of industries . . . in a situation where they already face serious challenges caused by extraordinary energy prices and global competition,” they said."}],[{"start":190.7,"text":"Some of the member states’ demands — such as reworking how to calculate the benchmarks — could require reopening legislation on the ETS, a potentially long and politically divisive process that could lead to further backsliding on Europe’s climate ambitions. But a diplomat from one of the countries insisted they were “legally possible”."}],[{"start":210.5,"text":"Officials have warned that if the new benchmarks are not adopted swiftly, member states would miss out on revenue from the ETS. The majority of income from the scheme filters back to countries."}],[{"start":232.3,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779887767_5086.mp3"}