Expanding the EU carbon market to raise diesel prices

EU motorists will pay "at least 50 [euro] cents more per liter of diesel to cover their carbon costs" from 2031, according to new analysis that raises fears of new protests against climate laws, the FT reports. The paper adds: “Fuel suppliers will have to buy allowances to cover their carbon dioxide emissions from 2027 and are expected to pass the cost on to consumers. Veyt, a carbon market analysis firm, expects the scheme to add 14 cents per liter of diesel in 2027, with the premium reaching 54 cents per liter in 2031 as more measures are phased in. Emissions from fuel for heating buildings will also have to be paid for, increasing coal prices by 68 cents per kg by 2031, Veyt found. ..Pascal Canfin, the French chairman of the European Parliament's environment committee, warned that if the price of carbon rose too high, "it would be clearly unacceptable to all Europeans".carbonbrief.com,  Hancock and Rachel Millard, Financial Times)