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Soaring power prices drive anxiety over EU climate plans 

The European Parliament is currently engaged in discussions regarding the European Commission's Fit for 55 plans, which are facing increased scrutiny due to soaring energy prices that have become a significant point of contention.

The European Commission (EC) has maintained that the EU Emissions Trading System (ETS) is not the primary cause of high power prices. Instead, it attributes the price surge to elevated gas prices and underlying structural issues within Europe's electricity market. Frans Timmermans, the EC's climate chief, informed Members of the European Parliament (MEPs) that only a fraction of the higher power costs, approximately "one-fifth," can be attributed to the rising ETS prices, while the majority is a result of limited gas supply. Timmermans argued that the escalating costs further reinforce the need for a rapid transition to cleaner energy sources.

Political opposition to the Fit for 55 proposals remains a significant risk. A French MEP and chair of the Parliament's environment committee expressed the opposition of his liberal Renew Europe group to the EC's proposition of expanding emissions trading to road transport and buildings. He stated that they believe the political cost is exceptionally high, while the climate impact is relatively low.

As the Fit for 55 proposals progress through the European Parliament during the winter months, and with gas prices anticipated to rise further as Europeans rely on heating during the winter, the European Commission is likely to face ongoing complaints and criticism.


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