The European Union is preparing to expand the system of emission allowances in an effort to meet stricter climate targets. The European Commission has proposed that they should also be used to pay for air pollution from road or shipping transport and heating of buildings. As part of the most fundamental package of climate-friendly measures to date, it also envisages the creation of a fund that should help people compensate for the expected increase in the price of heat or fuel.
The EU executive also plans to introduce a so-called carbon duty, which should be paid by companies exporting non-organic industrial products to the EU. If all changes are approved by the Member States and the European Parliament, they will take effect from 2026.