EU Considers Delaying New Carbon Market In Search Of Compromise

EU Considers Delaying New Carbon Market In Search Of Compromise - Carbon Herald
Credit: AAphotograph/Shutterstock

The 27 countries in the European Union contemplate delaying the start of a new EU carbon market for buildings and transport until the beginning of 2027. According to draft documents, the member states are trying to reach a deal on the more ambiguous climate policies. 

The EU is negotiating several laws aimed at putting a price on pollution. The Union is looking at upgrading its existing CO2 market for industry and power plants and a new strategy for imposing carbon costs on fuel suppliers for transport and buildings. 

The country negotiators will this week consider postponing the launch of the new market to 2027, Reuters reported. The European Commission’s proposal is 2026.  

The aim of this new policy is to negate the effects of increasing transport emissions as well as the third of emissions generated by buildings spewing fossil fuel. Some countries, however, are worried that the new carbon market will further increase citizens’ energy cost burden. 

Relevant: EU Proposes Carbon Removal Certification For More Transparency

Diplomats said the 2027 starting date – which is still subject to debate – would not disrupt the climate targets of the European Union as long as the other parts of the proposal are strengthened. 

The goal of the delay is to convince undecided countries and is earlier than other proposed options, which Brussels dismissed as detrimental for the development of a functional EU carbon market. The revenues from the new carbon market will fund low-income households. 

The proposal will also gradually add shipping to the current CO2 market by 2027. It would also maintain changes to the current market such as the rate at which the upper limit on carbon permits in the scheme falls yearly, and a gradual removal of free carbon permits for industries by 2035. 

The EU diplomats will also debate the rules that make responding to sudden CO2 price increases easier. In a meeting later in June, the ministers will try to achieve agreement before the member states and the EU Parliament discuss the final laws.

Read more: Europe Prepares Contingeny Plan For Energy Crisis

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts