Ships, planes could help EU pay for virus recovery

(EurActiv, 27 May 2020) The European Commission’s €750 billion recovery fund could be covered financially by new sources of revenue, which include extending the EU’s carbon market to the aviation and shipping sectors, the bloc’s executive confirmed on Wednesday (27 May).

Cash generated by the Emissions Trading System (ETS) via sales of pollution permits to certain sectors is currently channelled back into national budgets, but that could change if the Commission’s plan gets enough support.

In order to fund its ‘Next Generation EU’ recovery scheme, the executive has suggested that the ETS could be extended to include sectors that are now exempted and that Brussels would keep any new profits.

“Options could include an Emissions Trading System-based own resource including its possible extension to the maritime and aviation sectors, and a carbon border adjustment mechanism,” the Commission’s plan reads.

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EurActiv, 27 May 2020: Ships, planes could help EU pay for virus recovery