ETS2 will apply carbon pricing to road transport and buildings, which are responsible for 60% of the EU’s total carbon emissions. The scheme is set to start in 2027.

While fuel distributors will bear the regulatory obligations, the impact of price increases for everyday activities like driving and heating homes will likely fall on final consumers. This is ultimately unavoidable because societal decarbonisation is essential. Our project will raise awareness and engage with civil society and other stakeholders to ensure implementation is just and effective.

To alleviate the expected impact on society, the Social Climate Fund (SCF) has been established to protect vulnerable households. The SCF will support member states in implementing energy efficiency measures, decarbonising residential heating, and providing access to sustainable modes of transport. Funding for the SCF will be generated through the auctioning of allowances for ETS2 sectors and national governments will play a significant role in deciding how the fund is utilised through national social climate plans.

There is a clear need for evidence-based dialogue between civil society and policymakers on ETS2 and the SCF to build a comprehensive and shared understanding throughout the process. Underpinning this, public awareness of upcoming changes is vital to the successful introduction of these upcoming EU climate policies.

1. Establish a scientific knowledge base, build capacity and connect civil society, experts, decision-makers and other key stakeholders across the EU on ETS2 and the SCF.
2. Enhance the implementation and development of fair and effective carbon pricing policies at EU and national level through enhanced civil society cooperation.
3. Promote the engagement of people, civil society and other key stakeholders through project communication, campaigning and dissemination of output, as well as supporting replication across Europe and in neighbouring regions.