Wrangle over EU carbon market revamp threatens climate targets

EU lawmakers are reported to be struggling to reach a compromise over carbon market reforms. EU ETS shadow rapporteur, Jytte Guteland, has said “there’s no room or watering down”.

The main opposition has been to the launch of ETS2 in 2026 on fears it would add to already high costs of living. ETS2 would impose CO2 costs on suppliers of fuels used in vehicles and to heat homes. Compromise suggestions have included delaying the extension to 2027 or 2028. Or gradually phasing in the system. However, a Commission note seen by Reuters suggests this would mean the EU misses its climate target (as ETS2 is expected to deliver 45% of the extra CO2 cuts needed from those sectors to hit the 2030 61% emissions reduction goal – vs 2005 levels).

According to the Commission note, scrapping the proposal would mean replacing it with far tougher national policies.

Adapted from an article in Reuters