EU strikes provisional deal to boost carbon market in Green Deal

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Emissions trading will be extended to heating and road transport and will also cover shipping

Under the deal announced by representatives of EU member states and the European parliament, emissions trading will be extended to heating and road transport, and will also cover shippingPeople watch smoke and steam billow from Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, in Zlobnica, Poland, October 20 2022. Picture: KUBA STEZYCKI/REUTERS

Brussels — EU negotiators reached a political deal on Sunday to overhaul the bloc’s carbon market, cutting emissions faster and imposing new COThe EU carbon market requires about 10,000 power plants and factories to buy COpermits when they pollute — a system central to meeting the EU’s target to cut its net emissions 55% by 2030 compared with 1990 levels.

Under the deal agreed by negotiators from EU countries and the European parliament, the EU carbon market will be reformed to cut emissions by 62% from 2005 levels by 2030.permits from the system in 2024, 27-million in 2026 and cutting the rate at which the cap on CO“From 2027 on, its crunch time.

After 30 hours of talks that started on Friday, the EU also agreed to launch a new carbon market covering suppliers of COAfter EU legislators resisted including households in the scheme, negotiators agreed several measures to shield citizens from high COIf fuel prices are as high in 2027 as today, the introduction of the carbon market would be delayed to 2028. If its COpermits will be released into the market to attempt to tame prices.

The price of EU carbon permits has soared in recent years, boosted by the expectation that tougher EU emissions targets would curb the supply of CO2 permits in the scheme. The benchmark EU carbon price closed trading at around €84 per tonne of COThe EU will also launch a €86.

 

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