Europe’s car and construction sectors could face increased costs if they do not substantially reduce their carbon footprint. The EU’s executive arm is mulling creating an additional system of pollution-cutting incentives known as emissions trading for buildings and road transport, according to a document distributed to diplomats in Brussels before the summit. The planned gradual introduction of tailor-made greenhouse-gas trading systems for housing and transport would come on top of carbon caps for utilities and manufacturers in the existing EU Emissions Trading System (ETS). Morgan Stanley predicted that prices could exceed €60, driven by a reform of the emissions trading system in June. The rest come from sectors that fall outside its scope, including agriculture and land use, waste, road transport and buildings.

Source: Irish Independent April 26, 2021 01:40 UTC