EU Floats Fix to Carbon Market-Based Plan to Fund Energy Pivot
- France proposes new way of allocating funds to member states
- Some nations oppose CO2 market use to phase out Russian fuels
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The European Union suggested changes to its 20-billion-euros ($20.97 billion) plan to finance a shift away from Russian fossil fuels, seeking to alleviate member states’ concerns over the way funds from a carbon market-based tool will be distributed.
France, the holder of the EU’s rotating presidency, proposed on Thursday a new method of assigning to countries revenues from extra sales of emissions permits. The move comes after a group of governments strongly opposed the original allocation key used in a post-pandemic recovery fund. The new proposal accounts for inflation, which shot up across the continent after the Russian invasion of Ukraine aggravated an energy crisis, according to a document seen by Bloomberg News.