By Abbas Nazil
The European Union is drafting measures to control prices in its new carbon market following concerns from member states that the emissions scheme could drive up fuel bills for citizens, according to a letter by EU Climate Commissioner Wopke Hoekstra seen by Reuters.
The carbon market, set to begin in 2027, aims to impose a price on greenhouse gas emissions from heating and transport fuels to encourage the adoption of electric vehicles and cleaner energy systems.
Funds generated will be used to help citizens pay energy bills, subsidize electric cars, and support home energy efficiency renovations.
However, several EU governments, including France, Germany, and the Czech Republic, have warned that the policy could spark public opposition if it leads to higher living costs, urging Brussels to introduce tighter price controls.
Hoekstra acknowledged these fears and said the European Commission would propose measures to mitigate price volatility.
The new carbon market, known as ETS2, currently releases extra permits when prices hit €45 per tonne to ease costs.
The Commission now plans to double the number of additional permits—up to 80 million annually between 2027 and 2029—to prevent excessive price surges and strengthen market confidence.
It will also propose holding early auctions in 2026 to raise funds that will support investments in clean technology and energy transition efforts.
Czech Prime Minister Petr Fiala welcomed the proposal but called for a delay in launching the scheme to give governments more time to prepare.
EU leaders are expected to discuss the bloc’s 2040 climate target at a summit on Thursday, focusing on financial and policy strategies to help citizens and businesses adapt to Europe’s green transition.
