ets2
Weakening ETS2 risks undermining Europe’s climate strategy

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.

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Changes to ETS2 take pressure off fossil fuels and puts it back on people and the climate

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. 

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ETS2 and the Social Climate Fund: the German context

ETS2 and the Social Climate Fund: the German context

Germany accounts for almost a quarter of COâ‚‚ emissions in the transport and buildings sectors in the EU, which are covered by ETS-2. The faster emissions are reduced domestically, the more stable the European COâ‚‚ price will remain and the lower the risk of sudden cost increases.

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