LUXEMBOURG: The European Commission is preparing changes to the European Union’s new emissions trading system (ETS) for transport and buildings, set to take effect in 2027, to avoid sharp price increases for consumers.
Under the ETS, companies must buy permits to cover greenhouse gas emissions. From 2027, the system will be expanded to include carbon emissions from fuel combustion, particularly in road transport and heating — two of the bloc’s most emission-intensive sectors.
At a meeting of EU environment ministers in Luxembourg on Tuesday, Climate Commissioner Wopke Hoekstra proposed allowing an accelerated release of emissions allowances when the system begins. The move would increase supply to curb potential price spikes in fuel and heating costs.
The plan follows calls from Germany and more than a dozen other member states to review the market design before launch. They warned that high prices could trigger public backlash similar to past protests over fuel costs.
The Commission said a formal legislative proposal outlining the adjustments will be presented in the coming weeks. – BERNAMA
