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

Carbon pricing works

Without ETS2, the EU will not meet its 2040 climate target. Emissions from buildings and transport are not falling fast enough. We need to price pollution to incentivise the switch away from fossil fuels, to electrify heating and transport, and move to renewables.

Support households

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

Additional environmental policies needed

Complementary EU and national environmental policies, such as regulations to phase out fossil fuel boilers, emission standards for cars and energy standards for buildings will reduce pollution, effectively lowering the ETS2 price. This is especially necessary in the countries which make up 70% of ETS2 emissions - France, Germany, Italy, Poland and Spain.

No support for fossil fuels

Fossil fuel subsidies, including the low level of tax of gas and the support of fossil based and hybrid technologies, locks society into fossil fuels that neither people nor the planet can afford. By increasing the cost of pollution, carbon pricing diminishes support for fossil fuels and redirects resources to clean alternatives.

Energy security and green growth

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 by providing increased certainty for investment in electric vehicles, heat pumps, and solar and wind energy.

Our latest news

Green Transition and Social Justice: Greece Faces ETS2

by Gavin Mair | Jul 24, 2025 | Opinion

Nikos Mantzaris spoke on Naftemporiki TV about the impacts of the new Emissions Trading System (ETS2) for buildings and road transport on vulnerable households, as well as the tools Greece has at its disposal to address them.

Comments and recommendations by The Green Tank on Greece’s Social Climate Plan public consultation

by Gavin Mair | Jul 16, 2025 | Opinion

Greece’s national Social climate plan exhibits significant weaknesses and gaps that need to be addressed to ensure the effective implementation of ETS2.

Managing the risk of a high ETS2 carbon price for households

by Gavin Mair | Jul 15, 2025 | News

Reopening the MSR decision represents a significant risk to weaken climate ambition particularly in the current political climate where several countries are seeking to roll back climate policy; ETS2 included.

Greece and ETS2: What it means for households and how to protect the most vulnerable

by Gavin Mair | Jul 14, 2025 | News

The study shows that implementing ETS2 can be a significant opportunity to both tackle the widespread phenomenon of energy and transport vulnerability in Greece and reduce the carbon footprint of buildings and road transport. The key is to leverage funding sources beyond just the Social Climate Fund

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