For carbon pricing that puts people and planet first

LIFE Effect puts civil society across the EU in the driver’s seat to help national policymakers navigate the design of socially fair and environmentally effective carbon pricing and revenue use for buildings and road transport

Photograph: Toa Heftiba

The way we heat our homes and drive our vehicles must change

Pollution from buildings and road transport is not decreasing at a fast enough rate while energy and transport poverty is widespread across the EU.

LIFE Effect is a consortium of nine NGOs campaigning to make the new Emissions Trading System for road transport and buildings (ETS2) deliver much-needed climate action in a manner that is socially fair and environmentally impactful.

We push for an inclusive energy transition in buildings and road transport through the just and effective use of carbon pricing revenue accompanied by strong social climate policies to lower emissions and protect the most vulnerable.

Fuel used in buildings and road transport contributes almost

40%

of the EU’s carbon dioxide pollution

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What we stand for

Protect the planet

Cut emissions and air pollution

Affordable and sustainable living

Energy for homes and transport need not cost the earth

Urgent action now

End fossil fuel dependency

Our

demands

Achieve climate targets

Without ETS2, the EU will not meet its 2040 climate target. We need to price pollution to fight climate change but ETS2 can’t do all the work alone. Strong and complementary EU and national environmental policies are also necessary, especially in the countries which make up 70% of emissions under ETS2, Germany, France, Italy, Spain and Poland.

Ending energy poverty

Energy and transport poverty are major concerns across the EU. Carbon pricing offers solutions for member states to tackle the issue through the Social Climate Fund, other ETS2 revenue and other investments that provide affordable green alternatives to fossil fuels

The right climate for investment

The ETS2 will provide much-needed funds for climate investment and targeted income support in all EU member states. Spending must be additional, benefit society, and lift up those experiencing energy poverty

No more freebies for polluters

People are now expected to pay for their pollution. We need to make carbon pricing fair by phasing out free allowances under ETS1 and removing distortions to the market such as fossil fuel subsidies. To break free of this fossilised energy system, we must end our reliance on fossil fuels.

Code green for EU energy supplies

The Russian invasion of Ukraine revealed the precarious nature of EU energy supplies. ETS2 is a catalyst for increasing the EU’s energy sovereignty by speeding up the transition to domestic renewable energy, energy efficiency and the promotion of EU green industry, including electric vehicles, heat pumps, and solar and wind energy

Our latest news

ETS TALK: (Un)conditional Support to Top Polluting Sectors in Europe: Do They Pay, or Do We Pay?”

by Islene Façanha | Mar 12, 2025 | News

Discussion on how the EU’s upcoming Emissions Trading System for buildings and road transport (ETS2) can be leveraged to truly benefit society, particularly the communities most affected by its impacts

(Un)conditional support to top polluting sectors in Europe: Do they pay, or do we pay?

by Gavin Mair | Feb 20, 2025 | Events, Upcoming Events

This event discusses the impact of the EU ETS2 – the EU’s new emissions trading scheme that applies carbon pricing to buildings and road transport – on citizens and households, raising questions about fairness and revenue distribution.

U-turn on EU’s Emissions Trading System for road transport and buildings carries huge environmental, social and economic price tag

by Eleanor Scott | Jan 24, 2025 | Opinion

A small number of politicians are pushing to reverse course on the Emissions Trading System for road transport and buildings (ETS2). However, such a u-turn would fuel the climate crisis and cost European society and the economy dearly. Member states have all the tools to roll out ETS2 fairly and effectively but they need to act now.

ETS Talk – Maximising the Social Climate Fund: Spending measures for a just transition

by Islene Façanha | Nov 14, 2024 | News

This event explored the transformative role of the Social Climate Fund (SCF) in addressing energy and transport poverty while enabling a fair transition to a fossil-free future.

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