🏛️💶 EIB and EU front-load €3 billion for carbon market transition
Oneliner
The European Investment Bank (EIB) has front-loaded €3 billion to EU member states to mitigate the impact of an upcoming carbon price on heating and transport fuels, set for 2028. This funding, part of a total of €7 billion available, aims to support low- and middle-income households in transitioning to cleaner technologies. The decision responds to concerns from several member states about rising energy costs. While the funding is a step towards easing the transition, opposition remains from countries like Poland and the Czech Republic, which argue they are unprepared for the new carbon pricing system.
Key points
- EIB allocates €3 billion to support EU countries ahead of 2028 carbon tax.
- Total funding for carbon market transition now reaches €7 billion.
- Funds aim to mitigate rising energy costs for low- and middle-income households.
- EU faces opposition from member states concerned about the tax's impact.
Links
- Reuters: EU weighing options to support industry in carbon market overhaul
- Reuters: European Investment Bank front loads 3 billion euros to soothe carbon market concerns
- Die Welt: Deutschland darf saubere Technologien mit Milliarden fördern - WELT
- Euronews: EU unveils €3bn to mitigate impact of upcoming carbon tax
Facts
- EIB allocates €3 billion to support EU countries ahead of 2028 carbon tax.
- Total funding for carbon market transition now reaches €7 billion.
- Carbon pricing will cover CO2 emissions from heating and transport starting in 2028.
- Opposition from Poland, Hungary, and the Czech Republic regarding the carbon tax.
- Revenue from the carbon tax is expected to be reinvested into the EU's climate bank.
Quotes
- It is very important to change the narrative on ETS2. Many people talk about the burden, but we need to focus on solutions — Mohammed Chahim
- Investments in public transport, home renovations, and zero-emission mobility solutions take time to deliver tangible benefits — Bernd Weber
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