EU Faces Pressure for Stricter Carbon Market Price Controls

Germany, the Czech Republic, and 14 other nations are pressing the European Union to enforce stricter price controls on the upcoming carbon market, citing fears of escalating consumer bills. A document revealed by Reuters indicates that these countries hold enough sway to potentially amend EU legislation.

Set for a 2027 rollout, the EU carbon market will levy CO2 charges on suppliers of polluting fuels in vehicles and buildings. The current mechanism releases more CO2 permits when prices hit 45 euros. However, the coalition proposes intensifying this measure to curb price spikes by injecting additional permits.

Additionally, Poland and the Czech Republic warn of potential public backlash against climate initiatives if fuel costs rise. The EU has pledged substantial revenues from this market for consumer bill aid and greener solutions, though recent trends suggest a more cautious approach to its green agenda.

(With inputs from agencies.)