Source: European Parliament
The Commission and the Member States are working towards the timely implementation of the new Emissions Trading System for buildings, road transport and additional sectors (ETS2), which was adopted by the European Parliament and the Council in 2023. This includes regular technical level discussions and exchanges at the political level with all Member States, including Poland.
The Commission’s impact assessment[1] for the review of the ETS Directive provided a detailed analysis of the socioeconomic impact of ETS2. The impact assessment shows that the ETS2 effects on fuel prices are limited. Furthermore, ETS2 contains strong safeguard mechanisms to avoid prices rising very fast, including a safeguard to delay the start of the system to 2028 in case gas or oil prices are exceptionally high in 2026.
Europe’s reliance on imported fossil fuels causes energy price volatility and higher supply costs, significantly impacting consumers’ energy bills. To reduce energy costs for consumers in the EU, we need to reduce energy consumption and accelerate the roll-out of renewable energy, which is an effective way to achieve decarbonisation. The Social Climate Fund (SCF), financed by ETS2, aims to ensure that vulnerable households and micro-enterprises will be supported in this transition. The purpose of the SCF is to turn ETS2 into a clearly progressive measure, and to spur green investments that will address the root causes of energy and transport poverty.
- [1] SWD(2021)0601 final.