The price of carbon will weigh on fuels and heating

Four days after the “French moment” of the carbon border tax, here is the “German moment” of the carbon market. After agreeing on Tuesday on the project defended for two decades by Paris, the European institutions have acted, this weekend, the implementation of a project dear to Berlin: a new pricing of CO emissions₂.

From 2027, a new European market for carbon quotas will affect emissions related to fuels and heating. This is an extension across the Twenty-Seven of a solution implemented since 2020 in Germany as well as in five countries in northern Europe.

Controversial pricing

For its supporters, this carbon pricing can both accelerate the decarbonization of the two sectors that emit the most CO₂ of the EU, the transport of goods and people (26%) and the industrial production of electricity, heat and other derived fuels (24%), while freeing up enormous resources for public finances thanks to…