European Union countries on Wednesday backed plans to strengthen price curbs in the bloc’s upcoming carbon market, EU diplomats told Reuters, in response to concerns from some governments that the policy could raise fuel bills.
The changes to the carbon trading scheme, known as ETS2, still need to be negotiated and approved by EU countries and the European Parliament. The Parliament is still finalising its position, after which the negotiations can begin.
EU countries’ ambassadors backed the price curb plans, which the European Commission proposed last year, in a closed-door meeting on Wednesday, the diplomats said.
ETS2 will impose a price on CO2 emissions from heating and transport fuels from 2028, and spend the collected revenues on helping households and businesses invest in electric cars and energy-saving renovations.
The scheme has faced mounting political pushback from governments including Slovakia and the Czech Republic, who warn ETS2 could lead to consumers paying more for energy and want the scheme further delayed. The EU already delayed its launch by one year, to 2028.
