Climate Politics
EU Floats Measures to Restrict Prices in New Carbon Market
Residential houses near a lignite coal-fired power plant, in Jaenschwalde, Germany in 2023.
Photographer: Krisztian Bocsi/BloombergThe European Union plans to propose measures to limit the impact of its new carbon market, hoping to ease concerns among national governments about the cost of cutting emissions before a key debate on the bloc’s climate target.
The European Commission, the EU’s executive arm, intends to tighten price controls in a new cap-and-trade system for heating and transport fuels, according to a letter sent to member states on Tuesday and seen by Bloomberg News. The letter, signed by Climate Commissioner Wopke Hoekstra, comes two days before an EU leaders’ summit where they’ll discuss an ambitious 2040 emissions-reduction goal.