On April 15, 2023, the EU agreed to implement reforms to the Emissions Trading System (ETS) as the EU seeks to achieve climate neutrality. The improvements strive to lower industrial emissions in favor of investment in climate-friendly technologies. The reforms call for a 62% reduction in emissions in the ETS sectors by 2030, a significant shift from the previous goal of a 55% reduction in emissions. Rapporteur Peter Lise commented on the reforms and hopes that they will “provide a clear signal to European industry that it pays off to invest in green technologies.” Other reforms to the ETS include an obligation for countries within the EU to measure, report, and verify emissions from municipal waste incineration installations starting in 2024. Another significant change that will be implemented is the gradual decline in free allowances to companies as the Carbon Border Adjustment Mechanism (CBAM) is phased in. The CBAM aims to target carbon leakage and will be fully implemented by 2034. Under the CBAM, companies, including those operating under ETS, will be required to purchase CBAM certificates to pay the difference in carbon prices between where a product is produced and the price of carbon allowances as outlined by the ETS.