To be presented today by the European Commission, the EU’s upcoming “Fit For 55” package of climate-change measures, setting stricter and more ambitious objectives for a 55 percent carbon emission reduction by 2030, compared to 1990 levels, will bring about a series of revisions.
These will include changes to the Emissions Trading System (ETS) and fuel taxation, as well as the introduction of new taxes and a Carbon Border Adjustment Mechanism (CBAM), promising transboundary taxes on non-EU countries regarded as making a lesser effort, than the EU, to combat climate change.
It still remains unclear if consumers or polluters, or both, will cover the cost of the “Fit For 55” measures.
Heating and transportation costs are expected to rise considerably over the next few years, according to a Euractiv report.
The package’s draft proposes an expansion of the ETS into the heating sector, for buildings, as well as into transportation, as a disincentive restricting high-polluting practices, including use of diesel.
The CBAM is expected to be launched on a three-year trial basis, beginning in 2023, before it is officially implemented in 2026.