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The EU will aim to use profits from carbon trading to break an impasse over how to fund the bloc’s next long-term budget. Officials are preparing for heated negotiations over the next seven-year budget, running from 2021. They told the Financial Times members were ready to agree a plastics recycling tax.

A senior EU official said: “We have a Brexit gap. Member states know this and will eventually have to accept new revenue streams.” As part of the initial budget proposal in 2018, the European Commission proposed a tax on non-recycled plastics. The proceeds from this would go directly into the common budget rather than to the government's that collect them. The surcharge is estimated to raise €42billion (£35.7billion) over the course of the budget.

The EU will try to push for a plastic tax

The levy will help fill the gap made form Brexit

Member states have historically opposed attempts to divert revenue from their funds to Brussels. However, the debate over so-called “own resources” has changed as budget negotiations were damaged from the €15billion (£12.7billion) gap left by the UK’s departure. As well as the plastics levy, Brussels will attempt to convince governments of a more controversial plan to divert profits from the EU cap-and-trade carbon emissions trading system (ETS) to the common budget. ETS profits are currently collected by EU member states. JUST IN: EU warning: Brussels' threat to BLOCK London’s access to euro markets

The EU Commission proposed a tax on non-recycled plastic in 2018

Governments will be persuaded to divert profits from the EU carbon emissions trading system

The EU wants the ETS to include the maritime sector

A senior official warned negotiations over how to reform the ETS and what to do with the profits would be far more disputed that a plastics levy. They said: “It is always easier to create new sources of revenues rather than take away existing money as it happens with the ETS.” Another official claimed poorer nations that receive a portion of ETS funds are likely to raise the most objections.

Brexit timeline

The idea would need a unanimous support in Brussels for it to be accepted. Countries that are sceptical of giving Brussels autonomous tax-raising powers are more likely to resist any moves to introduce any EU own resources. Ireland’s EU affairs Minister, Helen McEntree, claimed more work needed to be done on how to set up a plastics waste tax.

One official claimed the tax would only be accepted at the end of negotiations