Pressure on UK as Germany backs ending free carbon permits for airlines

The German government is backing an extension of EU carbon pricing that will end free carbon permits for airlines, putting pressure on the UK to put in place a similar package to meet climate targets. The EC will propose a dozen climate policies on 14 July, each designed to slash greenhouse gases faster in line with an EU goal to cut net emissions by 55% by 2030 from 1990 levels. The package will include reforms to the EU carbon market and a border levy to impose CO2 costs on imported goods. All the policies will need approval from EU governments and the European parliament. Boris Johnson has pledged to give details of how the UK will meet climate targets ahead of the Cop26 conference in Glasgow this year. Ministers are concerned that the costs of transition arrangements to reduce emissions 78% by 2035 will dramatically force up the cost of fuel for transportation, including flying, potentially prompting protests and a backbench rebellion by Tory MPs. According to a document seen by Reuters, Germany backed the commission’s plan to impose CO2 prices on transport and heating in buildings through a separate system to the EU’s existing carbon market. “The long-term goal should be to have a uniform cross-sector carbon price in the EU,” the document said. The carbon market forces factories, power plants and airlines to buy permits when they pollute in the EU. Industry and airlines get some for free, shielding them from carbon prices that have soared to record highs this year. Story has more.<br/>