EU is planning a new social fund to protect households from rising carbon prices

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According to a draught document obtained by Reuters, the European Commission will propose a fund to assist disadvantaged households if its plan to expand carbon pricing to transportation and buildings results in higher fuel costs.
The EU’s executive Commission is finalising a massive package of 12 climate initiatives that it will present on Wednesday. Some EU countries are particularly concerned about one idea – a plan to create a carbon market for transportation and building heating fuels – because they think it would boost people’s expenses for home heating and car fuels.
According to a draught proposal obtained by Reuters on Monday, the European Commission wants to invest 20% of the projected earnings from the new carbon market into a fund to help vulnerable and low-income families (July 12). It did not confirm the fund’s projected size.
According to the draught, EU nations would have to set up plans outlining how they would spend the money on building renovations and installing zero-carbon heating systems to reduce household heating expenses or boost the use of low-emission transportation.
It claimed that member states would have to fund at least half of the projected cost of their plans themselves and that they should do so using proceeds from the new carbon market. The Commission did not respond to a request for comment on the plan, which might alter before it is published on Wednesday. The final regulations must be negotiated between EU nations and the European Parliament after it is released.

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