The deal aims to accelerate emissions cuts, phase out free allowances to industries and targets fuel emissions from the building and road transport sectors, according to a European Parliament statement.
Negotiators representing member states and the parliament had spent more than 24 hours in intense talks before reaching an agreement on Saturday night that widens the scope of the carbon market. The carbon market will be progressively extended to the maritime sector and intra-European flights. Waste incineration sites will be included from 2028, depending on a favourable report by the commission.
The European Commission had proposed a second carbon market targeting building heating and road fuels, but the plan raised concerns as households grapple with soaring energy prices exacerbated by Russia's invasion of Ukraine. Funds from this second market will go to a"Social Climate Fund" designed to help vulnerable households and businesses weather the energy price crisis."This deal will provide a huge contribution towards fighting climate change at low costs," European Parliament rapporteur Peter Liese said in the statement.
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