The European Commission has unveiled a revision to its Emissions Trading System (ETS 1), outlining plans beyond 2030. The proposal maintains the practice of free allocation of emission allowances, but introduces a key change: linking these allowances to investments in decarbonization efforts. Companies seeking continued support will now be required to submit and implement plans for emission reduction. This revised system aims to incentivize companies to actively reduce their carbon footprint. The Commission also plans to continue auctioning allowances after 2040, ensuring a market-based approach to emissions reduction. This long-awaited revision seeks to strengthen the EU’s commitment to climate goals and foster a greener economy.