Who will pay? Europe's bold plan on emissions risks political blowback

Reforms would set a carbon price for the majority of companies, but member states and activists worry that millions of poor will suffer

Wind turbines near a coal-fired power station in western Germany. Germany’s carbon-pricing model may soon go Europe-wide, but the writer says Brussels’ ambitions risk throwing Europe’s poorest inhabitants further into energy poverty by making them shoulder the burden of the bloc’s rush towards net zero. PHOTO: AGENCE FRANCE-PRESSE
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At the start of the year, the German government quietly launched a novel system of carbon pricing that could revolutionise who pays for the cost of polluting in Europe.

Since January, the European Union's largest economy has introduced a de facto tax of €25 (S$40) per tonne of carbon on petrol, diesel, heating oil and gas to ramp up the cost of dirty energy and incentivise greener ways of living. It means millions of Germans will be paying more at the petrol pumps and in their heating bills.

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