When will the new EU carbon tax on transport and buildings take effect?

The new carbon tax on road transport and buildings is scheduled to take effect in 2028.

What is the purpose of extending the EU's carbon price shock regulations?

The regulations are being extended beyond 2030 to ensure stable carbon prices for the upcoming carbon tax on transport and buildings, preventing excessive price spikes.

How will the EU's Market Stability Reserve help with carbon prices?

The Market Stability Reserve will provide a buffer of 600 million allowances, with up to 80 million allowances able to be released twice a year to prevent sharp price spikes.

Home / Environment / EU Carbon Tax: Price Spike Rules Extended

EU Carbon Tax: Price Spike Rules Extended

18 Feb

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Summary

EU countries will extend carbon price shock regulations beyond 2030.
New carbon tax on transport and buildings starts in 2028.
Market Stability Reserve will buffer 600 million allowances.

EU Carbon Tax: Price Spike Rules Extended

EU member states have agreed to extend regulations designed to manage carbon price shocks. This measure is in preparation for the new carbon tax that will cover road transport and buildings.

The bloc's mechanism to regulate price spikes will now extend beyond 2030. This aims to ensure the carbon price under the new tax, which is scheduled to take effect in 2028, does not rise excessively.

Households and businesses using fossil fuels for heating and transport may face higher costs when the EU's emissions trading system (ETS2) fully implements. Some countries, like Slovakia and the Czech Republic, have called for a delay until 2030, citing social impacts.