A European Union plan to charge fuel suppliers for the CO2 emitted by cars and home-heating has split member states and looks set to dominate negotiations on how to tackle climate change in 2022.
EU policymakers proposed a new emissions trading system (ETS) for transport and heating in July, as part of a package of measures to meet the EU's goal to reduce net emissions 55% by 2030 from 1990 levels.
At a meeting of EU environment ministers on Monday, Germany, Sweden and other states backed the scheme, which supporters say will cut emissions in a cost effective way and raise cash for green investments.
But others said they were worried about the social impact if fuel suppliers passed on the extra costs to consumers in the form of higher bills.
"The introduction of a new ETS system for the road transport and buildings sector is not possible to accept. In our view, it will lead to an increased burden on society and (the) most vulnerable citizens," Polish climate minister Anna Moskwa told the meeting.
Hungary and Slovakia said the measure, which would apply from 2026, was "premature", while Ireland, Portugal, Lithuania and Spain said they had concerns.
Germany, Austria, Sweden, Finland and Denmark spoke out in favour of the plan.
"We want a minimum price per tonne of carbon in Europe because we think this is going to be very important in ensuring our move away from coal," Germany's state secretary for economy and climate, Patrick Graichen, said.
Some EU officials, speaking on condition of anonymity, said there is a chance the divisions could scupper the proposal.
If that happened, states would have to introduce or strengthen other measures to reach the bloc's emissions-cutting targets.
EU climate policy chief Frans Timmermans said the Commission was "open" to alternative proposals to cut CO2 in buildings and transport, as long as they delivered the goals.
Countries will attempt to a agree a joint position by mid-2022 on the EU's vast package of climate proposals, which includes the new ETS and a 2035 phase-out of combustion engine cars. All must be approved by EU countries and the European Parliament.
The need to protect vulnerable households has loomed large in the talks so far, as countries consider the measure against a backdrop of soaring energy prices and record CO2 prices in the EU's existing carbon market.
The Commission wants to pair the ETS proposal with a 72-billion-euro fund to help compensate low-income citizens. (Reuters)