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EU countries approve reform of bloc’s carbon market

The European flag (left) flies on April 18, 2023 at the European Parliament in Strasbourg, eastern France. (PHOTO / AP)

LUXEMBOURG – European Union countries voted on Tuesday to approve sweeping reforms to the European Union's carbon market, its main climate policy, which are expected to hike the cost of polluting in Europe in the coming years and cut CO2 emissions faster.

The member states' vote was the final approval the policy needed, and it can now pass into law.

ALSO READ: EU Parliament backs overhaul of Europe's biggest climate policy

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.