EU agrees €20 bln boost for energy funding to quit Russian gas

The European Union will raise an extra 20 billion euros from its carbon market for investments to help end more swiftly the bloc’s reliance on Russian fossil fuels, under a political deal reached on Wednesday.

Negotiators from EU countries and the European Parliament agreed in the early hours of Wednesday to raise 60% of the grants from an EU Innovation Fund – an existing pot of carbon market revenue that is currently spent on breakthrough green technologies.

The other 40% would come from proceeds from CO2 permit sales held earlier than planned.

The EU carbon market forces power plants and factories to buy CO2 permits when they pollute.