EU ETS 2025: Slowing progress and divergence from 2030 targets
Emissions from the four sectors covered by the EU Emissions Trading System (EU ETS) in the EU-27 remained largely unchanged in 2025 (-1.7%).
ETS Talk: Carbon pricing (ETS2) and the Social Climate Fund, where do we stand?
On 27 April, three experts gathered for the latest ETS Talk to discuss ETS2, the EU’s new carbon pricing system for transport and heating, where we currently stand, and the impacts of the ongoing fossil fuel crisis.Â
Carbon pricing (ETS2) and the Social Climate Fund – where do we stand, and what are the impacts of the current fossil fuel crisis?
This ETS Talk will explore how rising energy prices, evolving EU policies, and the National Social Climate Plans (NSCPs) are influencing a fair and effective transition under the Social Climate Fund
ETS and national targets: Building a fair post-2030 climate architecture
If properly designed, the EU Emissions Trading System (ETS) and national targets can effectively complement each other and jointly contribute to achieving the EU’s proposed 2040 climate target of a 90% net emissions reduction compared to 1990 levels.
ETS Talk – ETS & national targets: building a fair post‑2030 climate architecture
ETS Talk on national targets and the ETS in a post‑2030 climate target architecture
Lessons from ETS1 for ETS2
The lesson from ETS1 is therefore not that revenue use has failed, but that legitimacy cannot be taken for granted. ETS2 will succeed politically only if carbon pricing is visibly linked to fair, effective and socially conscious investment.
ETS Talk – Lessons from ETS1 to ETS2: Insights for fair and effective climate investments
The next ETS Talk session will present a new study, led by the Reform Institute, which examines how ETS1 revenues have been invested across five EU member states: Germany, France, Poland, Italy, and Spain.
Rewatch: A fair and effective ETS2 – how do we get there?
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.
Webinar: A fair and effective ETS2 – how do we get there?
Join us for expert presentations and a timely discussion on ETS2 between policymakers, market analysts, and representatives from civil society and forward-looking industry. The event also marks the launch of the ETS2 101 guide produced by the LIFE Effect consortium.
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.
Changes to ETS2 take pressure off fossil fuels and puts it back on people and the climate
It is only by reducing the demand for allowances via investments in climate measures and complementary policies, that the ETS2 price can be sustainably contained. Unfortunately, many governments are falling short in their climate commitments. According to civil society and European Commission assessments of National Energy and Climate Plans, many fall short, particularly regarding efforts in the building and road transport sectors.Â
Making ETS2 work: Insights from Czechia, Poland, and Bulgaria
The session presented how the EU’s new carbon pricing system for buildings and road transport, the ETS2, is set to impact households in central and eastern Europe, and what policies are needed to ensure fairness and protect vulnerable groups.