By Kate Abnett
BRUSSELS (Reuters) -The European Union is drafting measures to control prices in its new carbon market, in response to governments’ concerns that the emissions-cutting scheme could increase fuel bills, the bloc’s climate chief said in a letter seen by Reuters.
The policy is designed to impose a price from 2027 on planet-heating emissions produced by heating and transport fuels, to encourage the shift to electric vehicles and cleaner home heating systems. Revenue from the scheme would be spent on helping people pay bills, subsidise electric cars and energy-saving home renovations.
However, some governments fear the measure will stoke opposition to climate change policies from citizens, if it is perceived as raising their bills. A group of 19 countries including the Czech R