EU reaches first-stage agreement on carbon trading as it begins overhaul plans
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European Union (EU) lawmakers have reached an initial agreement on reforms to the trading bloc’s carbon market, as they aim to overhaul the EU’s core policy for reducing planet-warming emissions.
The legislature’s lead negotiator Peter Liese announced that a broad majority of the European Parliament’s environment committee backed the changes,
The changes would scale back a planned new carbon market to impose CO2 costs on suppliers of the fuels used in buildings and transport.
Instead, parliamentary members agreed to apply the scheme to commercial entities from 2025, and only extend it to private consumers in 2029 if certain conditions are met.
Prices in the scheme would be capped at €50 per tonne.
Liese said the deal to leave households out of the new market was a “painful compromise” but he considered it a win, in light of the opposition from some countries and lawmakers to introducing the scheme at all.
Parliament’s environment committee will vote on the proposed changes next week, before a full parliament vote in June or July. If approved, the deal will form parliament’s position for final negotiations with EU countries on the reforms.