• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 5 days What fool thought this was a good idea...
  • 8 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 14 days The United States produced more crude oil than any nation, at any time.
Oil, Gas Activity in U.S. Holds Steady

Oil, Gas Activity in U.S. Holds Steady

The total number of active…

EU To Raise $21 Billion From Carbon Market To Help Ditch Russian Gas

The European Union and the European Parliament have reached a deal under which the EU is set to raise as much as $21.3 billion (20 billion euros) from the common carbon market to finance its strategy to ditch dependence on Russian gas, Bloomberg reported on Wednesday, citing EU officials familiar with the negotiations.   

The EU’s REPowerEU strategy will be financed via an Innovation Fund and frontloading allowances under the EU Emissions Trading System (EU ETS). The frontloaded ETS allowances, or auctions of emissions allowances, will account for 40% of the funding, while the innovation fund would contribute 60% to the 20 billion euros funding for the REPowerEU plan, Bloomberg’s sources said.

In October, the EU member states agreed on the ways to tap the carbon market, by modifying a proposal from the European Commission from May.

“As regards the sources of financing of the additional € 20 billion, instead of auctioning from the EU Emissions Trading System (ETS) Market Stability Reserve, the Council opts for a combination of sources: the Innovation Fund (75%) and frontloading ETS allowances (25%). The Council’s aim is to not disrupt the functioning of the EU ETS system while ensuring a credible revenue stream,” the EU said.

It looks like the deal between the EU member states and the European Parliament has changed the share of contribution from the innovation fund and ETS allowances, to 60% and 40%, respectively.

In another landmark carbon market deal this week, the European Parliament and the EU member states reached on Tuesday a provisional agreement to impose a carbon tax on the imports of polluting non-EU products such as iron and steel, cement, aluminum, fertilizers, and electricity, in a first trade regulation accounting for carbon emission intensity.

While the EU says that the law will incentivize non-EU countries to increase their climate ambition, the EU’s key trading partners, including the United States and emerging economies in Asia, have expressed concern that the new rules would further complicate trade and raise export costs for U.S. and other manufacturers.   

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News