CO2 tax on heating and transport, softened by new social climate fund

• The European Union (EU) has agreed to introduce a carbon price on buildings and road transport fuels, with a new €87bn social climate fund established to cushion the impact on households and help them invest in green solutions.
• The new carbon price will apply to petrol, diesel and heating fuels such as natural gas.
• Following negotiations to reform the EU’s Emissions Trading Scheme (ETS), negotiators agreed to start pricing the carbon emissions stemming from burning fossil fuels in road transport and heating in 2027, with a price ceiling of €45 per tonne of carbon emitted that will apply until 2030.

Source

• euractiv
• EU agrees carbon market overhaul in bid to hit 2030 climate goal

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