Ten EU States Push Back Against New Carbon Price on Fuel in Policy Review
EU Carbon Market Revision and Member State Opposition
By Kate Abnett
BRUSSELS, July 15 (Reuters) - Ten countries, including Italy and Poland, have urged the European Union to reconsider a new carbon price on fuel, as part of a separate revision of the bloc's carbon market, according to a joint statement seen by Reuters.
Their opposition to the levy risks upending plans to update Brussels' main climate change policy, the emissions trading system (ETS), and could pit them against proponents of the new charge like Germany and Sweden.
Proposed Revision of the Emissions Trading System
The European Commission will on Friday propose a revision of the trading system, which forces power plants, factories, airlines and shipping firms to pay for their CO2 emissions.
Member States' Joint Statement
In a statement shared with the Commission on Tuesday, the 10 countries said it should use the revision to also rethink a new CO2 price, known as ETS2, that the EU plans to impose on heating and transport fuels from 2028.
"European citizens should not be facing new climate taxes in current economic and geopolitical circumstances. ETS2 should be therefore addressed directly in the revision and carefully reconsidered," the statement said.
Countries Involved and Their Demands
Italy, Poland, Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Romania and Slovakia signed the statement, which also demanded changes to the existing carbon market.
For example, they called for the EU to give industries more free CO2 permits without broad conditions. The Commission has indicated it only wants to give more free permits to companies that agree to invest in decarbonising in Europe.
Showdown Over Measure Aimed at Driving Clean Energy Shift
Facing pushback from governments worried the new carbon tax on fuel would raise prices for consumers, Brussels has already delayed it by a year.
Its supporters argue it is crucial to driving the shift to cleaner cars and home heating systems and revenues from the CO2 charge will be reinvested in helping people switch to clean technologies, lessening the burden on consumers.
The Commission has said it does not want to amend it further before it has launched to allow companies time to prepare.
Potential Amendments and Political Dynamics
When national governments and EU lawmakers negotiate and approve the carbon market changes, however, they could add amendments of their own, including on the ETS2 charge. The 10 countries behind the statement have enough votes in the EU system to block amendments they oppose.
(Reporting by Kate Abnett; Editing by Joe Bavier)
