On Tuesday 2 December, the LIFE Effect consortium launched its ETS2 101 guide together with a panel discussion on the consequences of recent changes of carbon pricing for road transport and buildings in the EU.
Weakening ETS2 risks undermining Europe’s climate strategy
Nikos Mantzaris reminds us that artificially reducing carbon prices in the past led to higher emissions and delayed green investments, as seen during the 2005–2018 period of the first ETS. Instead of repeating the same mistakes, he emphasizes that the real solution already exists within the EU framework: the Social Climate Plans, which allow Member States to support vulnerable households and small businesses through targeted measures.
What is the ETS2 and why does it concern us?
May 1, 2025
On Tuesday April 29, the Green Tank organized the webinar “What is the ETS 2 and why does it concern us?”, in the context of the LIFE Effect project.
The seminar was attended by civil society actors, representatives of consumer organizations, associations, regulatory authorities, researchers and professionals.
The aim of the seminar was to provide information on the new Emission Trading System – ETS 2, which is expected to be implemented in 2027 and aims at decarbonising the buildings and road transportation sectors.
Recognising the importance of addressing the socio-economic impacts of the implementation of ETS 2, all available financial resources that can be channeled to mitigate the impacts were presented. Emphasis was placed on the Social Climate Fund, which was established by the European Union to shield vulnerable groups from the impacts of ETS2.
As member states are required by June 2025 to prepare and submit Social Climate Plans, the provisions of the relevant Regulation on the content of these plans and the eligible measures to address energy and transport vulnerability were presented.
In this context, the importance of the active participation of stakeholders in the design of the national strategies was stressed. For this purpose, The Green Tank, in cooperation with the social research company QED, conducted a series of interviews with various stakeholders, and analysed the different perspectives and the main challenges identified in the implementation of the new system.
The seminar concluded with fruitful comments and discussion among the participants of the webinar, highlighting the importance of dialogue and exchange of experiences in view of the implementation of ETS 2.
The LIFE Effect project, in which The Green Tank participates together with 8 organisations from EU Member States and is coordinated by Carbon Market Watch, aims to strengthen the knowledge, skills and networking of civil society and other stakeholders, with a view to a fair and socially sustainable implementation of ETS 2.
This post first appeared on The Green Tank website on 30 April 2025
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