MEPs have voted for an increase in the price of carbon credits. This will push up the cost of energy and fuel and drive up prices across the market, Reuters report.
In a deal agreed on Tuesday, the European Commission, the European Parliament and EU member states agreed the basis of a legal text which would launch a ‘Market Stability Reserve’ to counter the low prices charged for releasing carbon dioxide into the atmosphere.
The reforms will start on 1st January 2019 and will take away what Brussels calls the ‘glut’ of permits which has depressed prices on the world’s biggest carbon market.
Poland is leading the opposition to the changes which are designed to stimulate a ‘low carbon’ economy; something which hasn’t been achieved without subsidies and has not brought any of the promised long term jobs and growth which environmentalists have been promising.
The European Commission’s proposal wasn’t supposed to be reformed until 2021.
Former MEP and financial expert Godfrey Bloom told Breitbart London: “Politicians and civil servants simply fail to understand the most basic laws of supply and demand.”
“If supply is suppressed prices rise, if demand rises prices rise, if prices are capped or interfered with in any way supply dries up. To try and interfere with any of these dynamics those adjusting any aspect of the market would have to have perfect knowledge of it.
“This is of course impossible for anyone least of all the EU Commission or the parliamentary chamber, expect more chaos, higher prices for the poor and watch a few speculators clean up.”
The legislation still requires further endorsements before becoming law, including a plenary vote in the European Parliament.