EU motorists are set to pay at least an extra 50 cents a litre on diesel from 2031 to cover carbon costs, according to new analysis which raises fears of fresh protests against climate laws. Fuel suppliers will be required to buy allowances from 2027 to cover their carbon dioxide emissions and are expected to pass that cost to consumers.
“I think it has been a very political choice to set up this fund,” said Marcus Ferdinand, chief analytics officer of Veyt. He believes the scheme will be effective, triggering a “sizeable wave of emissions abatement equivalent to about 400Mt over all covered sectors by 2040”, with road transport most affected.
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