European Union countries would be required to spend 75% of revenue from emissions trading system permit sales on decarbonising covered local industries under a draft proposal by Peter Liese, the European Parliament’s lead negotiator. The share exceeds the European Commission’s initial 50% proposal and is intended to provide relief to industries facing high carbon costs while supporting investment in domestic industry and energy production. Liese’s plan would also cut the ETS emissions cap by 3.4% annually from 2031 and 2.3% from 2036, compared with the Commission’s proposed 3.7% and 1.7% rates. The proposal would therefore allow slower emissions reductions initially before accelerating them later in the 2030s. Parliament and EU member countries are preparing their negotiating positions, which are expected in December, before jointly negotiating the final ETS changes.