EU countries back tool to regulate carbon price spikes ahead of tax on cars and buildings

European Union member states have agreed to extend the bloc’s mechanism to control carbon price spikes beyond 2030, aiming to prevent excessive costs when the new carbon tax on cars, vans and buildings takes effect in 2028.

Households and businesses using fossil fuels for heating and transport are expected to face higher bills under the upcoming ETS2 emissions trading system, prompting growing debate over its implementation.

Slovakia and the Czech Republic have called for a delay to 2030, citing social impacts, while Sweden, Denmark, Finland, the Netherlands and Luxembourg warned that postponements would undermine EU climate policy.

These five nations emphasised that ongoing discussions on price stabilisation are creating uncertainty for investment decisions. The move complements a recent €3 billion European Investment Bank frontload to help vulnerable households manage rising energy costs.

via Euronews