EU Parliament to seal the fate of new carbon market for road transport and buildings
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.