IMF Warns Suspending EU Carbon Market Comes With Huge Risks

The International Monetary Fund urged the European Union not to pause its emissions trading system, warning it would come with “huge” risks that might jeopardize investment.

Some European countries are pushing for a suspension of the EU’s carbon market which is central to its ambitions of reaching net zero emissions by mid-century. There are concerns that high carbon costs are undermining the competitiveness of European industry.