How much do you know about carbon pricing?
National plans for spending climate funds, which the government must submit to the European Commission by mid – 2026, represent a historic opportunity to rethink how common money is used – success will depend on the cooperation of social policy experts and climate and communication specialists between society and the government.
The Italian approach to ETS2 and the SCF must move beyond ex-post compensation to embrace a pre-distributive logic. Rather than merely offsetting costs after they arise, policies should proactively direct ETS2 revenues toward systemic reforms that reduce both emissions and inequality. This includes investing in renewable energy, energy efficiency and low-carbon mobility, particularly targeting vulnerable households and microenterprises.
By Luke Haywood and Hannah O’Sullivan – discussing the ETS-2 carbon pricing system, the need for fair revenue distribution, and complementary policies to reduce fossil fuel use and support low-income households.
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.
Successful carbon pricing in transport and buildings would not only help Europe meet its emissions reduction goals; it could set a global benchmark, inspiring effective climate action worldwide.Â
The development of the Social Climate Plans is a great opportunity to improve the quality of life of citizens by combining the reduction of energy bills with climate protection.
