In another tweak to offer companies in the system more flexibility, the commission is set to propose allowing international credits accounting for up to 2% of the ETS cap, according to the people. Another 3% will be allowed in sectors outside the main carbon market, known as ETS1 in areas such as transport and buildings covered by ETS2 as well as agriculture and forestry. The EU’s regulatory arm has repeatedly said that if such credits are authorized, their purchase should be centralized and companies covered by the system won’t be able to use them directly for compliance.