Impending EU Carbon Price Surge: How It Will Affect Heating Costs for Businesses in Oman
BERLIN: A new analysis has revealed that the European Union’s forthcoming carbon price, set to impact emissions from buildings and transport starting in 2028, will lead to varying increases in household heating costs across the bloc. Notably, central and eastern European countries are expected to face more significant hikes.
Conducted by the Bertelsmann Foundation, the study indicates that greenhouse gas emissions from heating and road transport will be encompassed within a unified EU carbon market aimed at accelerating the transition away from fossil fuels. Approximately 103 million households across the EU are anticipated to be affected by these changes.
The analysis is based on the assumption of a carbon price of €60 ($70) per tonne of carbon dioxide by 2028. In Germany and several other western and northern EU nations where carbon pricing is already in effect, annual household heating costs are projected to increase by about €17 compared to 2025.
In contrast, countries like Portugal, Ireland, Denmark, and Sweden may see a decrease in heating costs, as their existing carbon prices already exceed €60 per tonne, according to economist and study author Sara Hagemann.
On the other hand, central and eastern European nations, where the usage of fossil fuels such as gas, oil, and coal remains prevalent, will experience notable increases in heating costs. In these regions, the introduction of a €60 carbon price could raise annual household heating expenses by an average of €100 to €400, the analysis states.
—dpa
Special Analysis by Omanet | Navigate Oman’s Market
The impending EU-wide carbon pricing set for 2028 presents both risks and opportunities for businesses in Oman, particularly those in energy-intensive sectors. As European competitors adapt to rising costs, smart investors should explore clean energy initiatives and sustainable practices now, positioning themselves ahead of potential shifts in consumer preferences towards greener alternatives. Additionally, with the potential for increased global demand for low-carbon products, this could serve as a catalyst for Oman’s diversification efforts in its economy.
