The European Union Industry Committee voted in favor of reforming the EU’s carbon market. The EU’s emissions trading system, a cap-and-trade market for carbon emissions, covers 45% of the EU’s greenhouse gas emissions. Companies either buy emissions allowances or are given them free of charge; fines are imposed if a company exceeds its emissions allowance. The Committee’s proposal would reduce emission permits in the market by 2.2% annually between 2020 and 2030, would significantly reduce emissions allowances in certain energy-intensive industries, and would require industries perceived to be at risk of moving outside the EU to buy their allowances. In addition, the agreement would nullify the 300 million surplus emissions allowances that are in the Market Surplus Reserve, a system that has inadvertently undermined the EU’s reduction targets. The agreement was supported by the cement lobby; conversely, environmental groups think it isn’t enough to meet the EU’s emission reduction targets. The proposal is expected to reach a plenary vote in February 2017. For the full story, see http://uk.reuters.com/article/us-carbon-eu-vote-idUKKCN12D119.