Wrangle over EU carbon market revamp threatens climate targets

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Wrangle over EU carbon market revamp threatens climate targets
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BRUSSELS - Officials and lawmakers negotiating an overhaul of the EU carbon market are struggling to reach a compromise over plans to levy CO2 costs on suppliers of polluting fuels, potentially putti

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ng the bloc's climate change targets at risk.

"There's no room for watering down," said European Parliament negotiator Jytte Guteland."We need to preserve the ambition to make sure we obey the climate law," she added, referring to the legally-binding climate targets. But it has faced fierce opposition from some member states, which - with an eye on gas prices soaring to record levels - fear it would raise energy bills further and hurt poorer citizens.

Scrapping the EU proposal would mean replacing it with far tougher national policies, and the investments to match, the Commission said. Parliament's lead negotiator, Peter Liese, said the lawmakers' position was that the fund should be launched before the new ETS, which would require the 27-country bloc's budget to pay into it.

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