EU Fast-Tracks €3 Billion for Carbon Market Adjustments

The European Investment Bank is expediting €3 billion to help governments mitigate impacts on poorer citizens ahead of the EU's carbon market launch in 2028. The market will price CO2 emissions from heating and transport fuels, sparking concerns about higher costs, particularly from Poland and the Czech Republic.

The European Investment Bank is hastening the disbursement of €3 billion to aid governments in insulating poorer citizens against the forthcoming EU carbon market's effects, as announced by the European Commission on Thursday. This initiative is part of efforts to facilitate a smoother adaptation to the market set to launch in 2028, targeting CO2 emissions from heating and transport fuels.

Despite its climate-focused objectives, the policy has sparked opposition, particularly from Poland and the Czech Republic, due to fears of escalating fuel and heating costs. The EU responded by delaying the policy's implementation by a year to 2028, as well as by planning investments to support the transition to cleaner technologies.

Revenues from the new carbon market are expected to eventually repay the EIB's €3 billion support. The initiative has gained endorsement from consumer advocacy groups who emphasize the need for alternative solutions to higher fuel prices. Calls for additional policy measures to protect consumers, such as stricter price controls, have also been made by several EU member states.

(With inputs from agencies.)