Ten countries, including Italy and Poland, have urged the European Union to reconsider a new carbon price on fuel as part of a separate revision of the bloc’s carbon market. Their opposition to the levy risks upending plans to update Brussels’ main climate change policy, the emissions trading system (ETS), and could pit them against proponents of the new charge like Germany and Sweden.

Carbon Price Opposition

The European Commission will propose a revision of the trading system, which forces power plants, factories, airlines, and shipping firms to pay for their CO2 emissions. The 10 countries said the Commission should use the revision to also rethink a new CO2 price, known as ETS2, that the EU plans to impose on heating and transport fuels from 2028.

European citizens should not be facing new climate taxes in current economic and geopolitical circumstances. ETS2 should be therefore addressed directly in the revision and carefully reconsidered, the statement said. Italy, Poland, Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Romania, and Slovakia signed the statement, which also demanded changes to the existing carbon market.

For example, they called for the EU to give industries more free CO2 permits without broad conditions. The Commission has indicated it only wants to give more free permits to companies that agree to invest in decarbonizing in Europe.

Impact on Consumers

Supporters of the new carbon tax on fuel argue it is crucial to driving the shift to cleaner cars and home heating systems, and revenues from the CO2 charge will be reinvested in helping people switch to clean technologies, lessening the burden on consumers. However, the 10 countries behind the statement have enough votes in the EU system to block amendments they oppose.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.