On 9 September 2026, the LIFE EFFECT project hosted its second Carbon Pricing Hub, a hybrid session entitled “Why the ETS Must Deliver for People.” The discussion focused on the social dimension of the EU Emissions Trading System (ETS), exploring how the upcoming ETS1 review can ensure that carbon pricing not only drives emissions reductions, but also delivers tangible and visible benefits for people. Speakers highlighted the importance of putting citizens, workers and communities at the heart of the transition, while recognising that the social dimension of the ETS has often received less attention than issues such as competitiveness, despite the real impact of climate policies and energy costs on households and communities. 

A recurring topic was the use of ETS revenues. Participants argued that revenues should be better directed towards the climate and social transition, including support for vulnerable households, energy efficiency, electrification, workers and affected regions. WWF highlighted the scale of expected revenues for 2026–2030 and argued for stronger requirements on how these funds are spent.

The discussion also addressed fairness and the distribution of costs. Carbon Market Watch’s contribution questioned whether those most responsible for emissions are paying their fair share, noting concerns that costs can ultimately be passed on to consumers, disproportionately affecting lower-income households. Health benefits were also emphasised, particularly from reducing fossil-fuel pollution, with speakers arguing that these co-benefits should be considered alongside emissions reductions.

From a workers’ perspective, IndustriAll stressed that the ETS must be accompanied by the enabling conditions needed for industrial decarbonisation, including adequate electricity grids, CCS/CCU and sustainable biomass. These conditions are not yet in place. They also called for social conditionalities on public funding, covering issues such as job protection, collective agreements, fair wages, working conditions and job security.

The session also discussed free allocation, maritime transport and aviation. Several speakers called for stronger conditions attached to free allowances, while there were calls to address emissions from private aviation and to expand the coverage of maritime emissions.

Overall, the discussion centred on how we can bring together climate ambition, industrial decarbonisation and social fairness, while making sure the transition works for people on the ground. The main proposals included stronger social conditionalities, a fairer redistribution of ETS revenues, and greater investment in the infrastructure needed to support decarbonisation. There was also a strong focus on making the benefits of the transition more visible and tangible for citizens and workers. Looking ahead, the ETS review was seen as an important opportunity to strengthen its social dimension, improve how it works in practice, and ensure that we continue to raise ambition while building a transition that is fair, inclusive and delivers real benefits for people and communities.