How much do you know about carbon pricing?
ETS2 will be an important step in driving the acceleration of decarbonisation. However, while carbon pricing is expected to be an efficient decarbonisation
policy it can have regressive effects, including putting an unintended burden on consumers, particularly vulnerable consumers.
Using money raised from fossil fuels to support affected households.
Alongside investments in clean alternatives like heat pumps and public transport, direct payments can protect vulnerable households and all those affected by high prices.
Signatories believe that to better prepare member states for the implementation of ETS2, early access must be granted to revenue before the system begins in 2027.
Reviewing the revenues from the ETS auctions reveals significant shortcomings in expenditure planning and fund traceability.
Only nine percent of the revenues generated by the system have been allocated to measures addressing climate change.Â
