More importantly EU is finally, gradually, fixing the problems in Emissions Trading System (ETS is cap-and-trade where they set up a annual cap for emissions and then it's possible to trade with emissions)

They have been giving the largest chunk of emission allowances (EUAs) free for big polluters. In principle that's OK because there is still incentive to reduce emissions and get money from selling EAUs. Unfortunately if you pollute less they reduce those EUAs and that takes incentives away. That will be eventually fixed.

There will also be carbon tariffs from imported products to take out incentive to move emissions elsewhere and level the playing field.