Ten countries ask EU to reconsider new carbon pricing on fuel

Ten countries, including Italy, Poland and the Czech Republic, have urged the European Union (EU) to "reconsider" a new carbon fuel price as part of an independent revision of the EU's carbon market.

They could be pitted against those who support the new charge, such as Germany and Sweden.

The European Commission is set to propose on Friday a revision to the CO2 trading system that forces power plants, factories, airlines, and shipping companies, among others, pay for their CO2 emission.

In a joint statement with the Commission, the 10 countries stated that it would be a good idea to use the review as an opportunity to rethink the new CO2 pricing, called ETS2, which the EU intends?to implement on heating fuels and transport fuels starting in 2028.

In the current geopolitical and economic climate, European citizens shouldn't be faced with a new climate tax. ETS2 must be addressed in the revision process and should be carefully considered," said the statement.

The statement signed by Italy, Poland Bulgaria Cyprus the Czech Republic, Estonia Greece Hungary Romania and Slovakia also called for changes to the carbon market.

They called on the EU, for example, to grant more CO2 permits free of charge without any conditions. The Commission stated that it only wanted to offer more free permits for companies who agreed to invest in Europe's decarbonisation.

SHOWDOWN ON MEASURES INTENDED TO DRIVE CLEAN ENERGY SLIP

Brussels, facing a rebuff from governments who were concerned that the new carbon tax would increase prices for consumers, has already 'delayed it by an year.

The CO2 tax is a key factor in driving people to switch to cleaner technologies.

The Commission said that it would not like to make any further changes before the launch date to give companies enough time to prepare.

However, when?national government and EU legislators negotiate and approve the carbon market changes they could add their own amendments, including to the ETS2 fee. The 10 countries that signed the statement are able to use their votes within the EU system in order to block any amendments.

(source: Reuters)