EU hails deal to expand carbon trading market for business

Europe is also set to accelerate the pace at which energy-hungry companies are obliged to reduce pollution

Germany's economics and climate protection minister Robert Habeck said the new plan 'ensures that we in the EU walk the path to climate neutrality together'. Picture: Britta Pedersen/DPA/AP 

The EU has reached an agreement to strengthen and expand its flagship carbon market, endorsing the centrepiece of the Green Deal strategy that aims to make its economy climate-neutral by mid-century.

Under a provisional deal announced by representatives of EU members and the European Parliament, emissions trading will be extended to heating and road transport, and will also cover shipping.