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EU plans new social fund to shield citizens from carbon costs - draft

(Reuters, 12 Jul 2021) The EU's executive Commission is putting the finishing touches to a bumper package of 12 climate policies it will propose on Wednesday.

The European Commission will on Wednesday propose a fund to support vulnerable households if its plan to expand carbon pricing to transport and buildings results in higher fuel bills, according to a draft document seen by Reuters.

The EU's executive Commission is putting the finishing touches to a bumper package of 12 climate policies it will propose on Wednesday.

One proposal - a plan to create a carbon market for fuels for transport and heating buildings - has some EU governments particularly worried, as they fear it could raise people's bills for home heating and filling up their cars.

To address those concerns, the European Commission wants to put 20% of the expected revenues from the new carbon market in a fund to support vulnerable and low-income households, according to a draft proposal, seen by Reuters on Monday. It did not confirm the expected size of the fund.

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Reuters, 12 Jul 2021: EU plans new social fund to shield citizens from carbon costs - draft