EU plans fund to protect citizens from new carbon prices
The European Commission will set up a fund to support vulnerable households if their fuel bills rise as a result of its plan to extend carbon pricing to transport and building heating systems, the climate policy chief said on Wednesday. of the EU.
The Commission will come forward next month with a set of policies aimed at reducing global warming emissions more quickly during this decade, including changes to the fuel tax and stricter renewable energy targets. Among the proposals under consideration is a CO2 emissions trading system for transport and heating systems. Read more
The plan has stoked concerns among some EU countries and European Parliament lawmakers, who say it could increase fuel costs for citizens, hitting low-income and vulnerable groups harder.
EU climate policy chief Frans Timmermans said on Wednesday that such a proposal would be accompanied by measures to mitigate the social impact.
“Part of the income generated by the trading of emission rights in road transport and buildings could be paid into a dedicated fund, so that Member States can use this income to offset the cost of this transition for vulnerable citizens “, Timmermans told the European Economic and Social Committee. .
Redirecting carbon revenues to citizens could help them switch to green alternatives such as zero-emission home heating systems or electric vehicles, he said.
The EU already uses an emissions trading system, or carbon market, to assess pollution in the electricity sector and industry. The program requires power plants and manufacturing facilities to purchase a permit for each tonne of CO2 they emit.
Buildings – which produce more than a third of the block’s CO2 emissions, many of which are heated by fossil fuels and not energy efficient by modern standards – and transportation would be in a new, separate system. Read more
The Commission’s forthcoming proposals aim to ensure that the EU meets its target of reducing its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
This target will require a further 10 percentage point reduction in combined emissions from sectors currently not covered by the EU carbon market, including transport, buildings and agriculture. Read more
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