EIB to Front-Load €3 Billion for EU's Carbon Market Strategy

The European Investment Bank (EIB) plans to provide €3 billion to support EU governments in protecting vulnerable citizens from a new carbon pricing policy set for 2028. This initiative aims to fund projects that switch to cleaner technologies, addressing concerns about rising heating and transport fuel costs.

The European Investment Bank (EIB) has announced an initiative to 'front load' €3 billion, equivalent to $3.5 billion, assisting EU governments in shielding economically vulnerable citizens from the upcoming EU carbon pricing policy on heating and transport fuels.

The European Union's carbon market, set to enact a CO2 emissions price by 2028, aims to reduce pollution by encouraging cleaner vehicles and heating systems. However, some nations, including Poland and the Czech Republic, have raised concerns about increased fuel and heating costs.

In response, the EIB's funding will support projects that help citizens and small businesses transition to cleaner technologies. This move seeks to mitigate financial burdens once the carbon market is operational, with the funding eventually repaid through market revenues.

(With inputs from agencies.)