A dispute over how to shield low-income citizens from European Union policies to put a price on pollution is threatening to prevent the bloc's countries from agreeing a raft of new green measures.
Environment ministers from the EU's 27 member countries meet on Tuesday to attempt to agree joint positions on more ambitious laws to reduce planet-warming emissions, including reforms to the EU carbon market and a 2035 phase-out of new fossil fuel-powered cars.
The proposal, which the European Commission says is needed to tackle rising transport emissions, has split countries, with some worried it could raise citizens' energy bills - which have soared in recent months and are fuelling inflation. Countries are split over how big the fund should be, and how to finance it. The Commission proposed it contain revenues from a quarter of the CO2 permits sold in the new carbon market - expected to yield roughly 72 billion euros from 2025-2032.
The risk is that failure to approve the fund could thwart deals on other proposals - including reforms to the EU's existing carbon market - since the laws are interlinked.
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