The European Commission will propose measures to ease the impact of its new carbon tax on citizens and businesses, Environment Commissioner Wopke Hoekstra announced on Tuesday after a meeting of environment ministers in Luxembourg.
European Commission President Ursula von der Leyen had revealed on Monday that Hoekstra would present the proposals in response to concerns from several Member States over the potential effects of the ETS2 system.
Under ETS2, suppliers of natural gas, petrol, and diesel will need to purchase quotas for their CO2 emissions, starting in 2027. This would potentially increase the costs for consumers.
This system extends the existing ETS framework, which currently covers sectors such as aviation and shipping.
The carbon market is a key tool in the EU’s strategy to achieve climate neutrality by 2050.
The new proposals come ahead of a European summit at which Member States will discuss a 2040 climate goal. The Commission aims to quell dissent and secure consensus for its target of a 90% reduction in CO2 emissions.
One suggestion is to release additional emission quotas from the market stability reserve if carbon prices exceed €45 per tonne, which would lower costs. Unused quotas would remain in reserve after 2030 to maintain balance. Early purchase options could also begin in 2026.
The detailed proposal will be unveiled within weeks. Member States and the European Parliament will then vote on it.
Hoekstra said ministers had already responded positively to his suggestions during Tuesday’s meeting.
