U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag

Carbon Market Watch opposes efforts by politicians in countries like Poland and Czechia to reverse or delay the EU's ETS2 carbon pricing system for buildings and road transport. The organization argues that the ETS2 is critical for achieving a 42% emission reduction in these sectors by 2030 and a 55% net reduction overall by 2050. It highlights that the system includes social protections, such as the €86 billion Social Climate Fund and a €45 per tonne soft price cap, to protect vulnerable populations. The document warns that weakening the system would increase future economic costs, exacerbate the climate crisis, and undermine the EU's energy sovereignty.

• The ETS2 is designed to apply carbon pricing to buildings and road transport starting in 2027, which will result in approximately 75% of EU emissions being covered by carbon pricing.
• If implemented as agreed, the ETS2 is expected to achieve a 42% reduction in emissions for the buildings and road transport sectors by 2030 compared to 1990 levels, supporting the EU's broader goal of a 55% net reduction by 2050.
• To mitigate social impacts, the EU established the Social Climate Fund with over €86 billion in support, alongside a 'soft price cap' of €45 per tonne of CO2 and a 30% increase in emission allowances during the first year.
• Certain EU member states, specifically Czechia, Poland, Slovakia, and Bulgaria, have proposed weakening the ETS2 by delaying its start to 2028 and altering the market stability reserve to suppress prices.

APA

Scott, E. (2025). U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag. Carbon Market Watch. https://carbonmarketwatch.org/2025/01/24/u-turn-on-eus-emissions-trading-system-for-road-transport-and-buildings-carries-huge-environmental-social-and-economic-price-tag/

Chicago

Scott, Eleanor. U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag. Carbon Market Watch, 2025. https://carbonmarketwatch.org/2025/01/24/u-turn-on-eus-emissions-trading-system-for-road-transport-and-buildings-carries-huge-environmental-social-and-economic-price-tag/.

Wikipedia

{{cite press release |last1=Scott |first1=Eleanor |title=U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag |publisher=Carbon Market Watch |date=24 January 2025 |url=https://carbonmarketwatch.org/2025/01/24/u-turn-on-eus-emissions-trading-system-for-road-transport-and-buildings-carries-huge-environmental-social-and-economic-price-tag/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{scott2025uturn, author = {Scott, Eleanor}, title = {{U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag}}, publisher = {Carbon Market Watch}, year = {2025}, month = jan, url = {https://carbonmarketwatch.org/2025/01/24/u-turn-on-eus-emissions-trading-system-for-road-transport-and-buildings-carries-huge-environmental-social-and-economic-price-tag/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }