Can the European Parliament introduce an effective price on road transport and building emissions?
The ETS2 is the carbon market for road transport and buildings, which was proposed last year as part of the landmark Fit for 55 package. Under this new ETS2, fuel suppliers would need to buy pollution permits for each liter of fuel they put on the market. They would then pass on the cost of pollution permits to end-consumers, in the form of increased prices for refueling your car or heating your home. To shield low-income households from this price increase, the Commission proposed a new Social Climate Fund (SCF).
These two packages offer a step in the right direction to curb emissions whilst protecting households from the increased price of the transition. Yet, more is to be achieved to ensure a just transition in Europe. T&E has produced two short briefings that look at what is at stake for these two key climate files.
Reinvestment in green infrastructure and targeted redistribution of revenues will help low- and middle-income households to adjust to the EU’s new ETS...
ETS2 is a €300 billion opportunity to liberate Europeans of expensive oil imports and reduce pollution from vehicles. The social concerns are real but...
The decision to create a Europe-wide carbon price was right but creates significant political risk. The good news is it can still be fixed.