(Bloomberg) – EU governments are preparing to fight for a fund designed to protect some consumers from the costs of the new carbon market, and France is proposing to limit its size by implementing an agreement on an ambitious 2030 climate plan. .
France, currently holding the EU presidency, is trying to reach an agreement between national governments on Tuesday on how to activate the 55% emissions reduction target for this decade.
According to EU diplomats, France has proposed postponing a new emissions program for buildings and transport for one year and reducing the fund to reduce the impact of the new market to € 59 billion ($ 62 billion) from the € 72 billion proposed by the European Commission. Knowing the preparatory talks ahead of the June 28 ministerial meeting.
Diplomats who asked not to be identified because the discussions were private said the proposal reflected calls from countries including Germany, Sweden, Denmark and the Netherlands that wanted to further reduce the size of the Social Climate Fund.
They said countries including Poland, Hungary, Slovakia, Romania, Bulgaria, Latvia, Lithuania, Croatia and Greece were opposed and said more money was needed to cover the costs of the new market.
Will work 55
The Social Climate Fund is a key component of the so-called Fit for 55 package, which is designed to make every sector of the economy more sustainable over the next eight years and pave the way for climate neutrality by 2050. Funded by carbon auctions, the new emissions trading scheme aims to reduce costs for the most vulnerable consumers, small businesses and transport users.
The deal, drawn up by France, will delay the launch of the carbon market for buildings and transport until 2027 and will provide funding for the Climate Fund for the period 2027-2032 compared to the Commission’s proposed 2025-2032. Spending could start in 2026.
On Tuesday, the ministerial agreement will determine the negotiating position of the member states for further negotiations with the European Parliament and the European Commission on the final form of the package.
It would also lead Member States to contradict Parliament, which agreed this month to maintain the climate fund while reducing a new carbon market scheme, often referred to as the Emissions Trading Scheme 2, to avoid the risk of a recurrence of yellow vest protests. which shook France three years ago.
The protests began after French President Emmanuel Macron decided to raise taxes on fossil fuels to encourage a shift to greener alternatives.
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