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 package will include reforms to the EU carbon market and a border levy to impose CO2 costs on imported goods. “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. Berlin said the reforms to the EU’s carbon market should prolong free carbon permits “to an appropriate extent”, but end them soon for aviation, the document showed.

Source: The Guardian June 06, 2021 16:41 UTC