iDNES: Major reform of emission allowances coming, will make fuel and coal more expensive

Against all odds, the EU is sticking to its goal of becoming climate neutral by 2050. The next step is a major reform of emission allowances, tentatively agreed by EU Council and European Parliament negotiators just before Christmas. Emissions trading (ETS) will also apply to buildings and road transport from 2027. Our Senior Researcher Kateřina Davidová commented on this issue for iDNES.

"In Germany, where a similar system to ETS 2 has been in place since last year, it is estimated to have contributed eight cents (roughly two crowns) per litre to the price of petrol and diesel." 

"The impact of the new system on households is to be compensated for by a new Social Climate Fund, which will contain €86.7 billion (more than two trillion crowns), Davidová said. Member states will be able to draw money from the fund before ETS 2 is launched. The rest will go to investment in the development of clean technologies such as renewable energy, heat pumps, electrified transport and so on." 

 You can read the whole article here.

Kateřina Davidová
Senior Research Fellow

Expertise: EU climate and energy policy, environmental protection