By Stefan J. Bos, Chief International Correspondent Worthy News
BRUSSELS (Worthy News) – The European Parliament has approved reforms to the European Union’s carbon market, which are expected to hike the cost of polluting in Europe.
European lawmakers said the reforms include changes to the current ‘emissions trading system’ (ETS) of the 27-nation bloc.
Brussels seeks to phase out free carbon allowances for its producers, ending in 2034, officials said.
The border adjustment mechanism covers iron, steel, cement, aluminum, fertilizers, electricity and hydrogen, and other indirect emissions under certain conditions.
“Importers of these goods would have to pay any price difference between the carbon price paid in the country of production and the price of carbon allowances in the EU ETS,” lawmakers said.
EU lawmakers gathering in the French city of Strasbourg also agreed on a social climate fund to help individuals and small companies manage higher costs for fuel.
The fund, worth tens of billions of euros, would start operating in 2026 and filled with proceeds from the auction of “emissions vouchers.”
The laws are part of the bloc’s “Fit for 55” package, intended to help the EU cut its greenhouse gas emissions by 55 percent by 2030 from 1990 levels and achieve “net zero” emissions by mid-century.
Climate change-fearing scientists and EU legislators say emissions contribute to dangerous global warming, though skeptical experts disagree.
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