A carbon market for buildings must be constructed on solid foundations

The author contends that the proposed ETS2 for buildings and road transport risks exacerbating energy poverty and failing to drive decarbonization unless it is accompanied by complementary policies to remove renovation barriers and a reform of the current ETS to eliminate free allowances for heavy industry.

• Buildings in the EU account for 36% of greenhouse gas emissions and 40% of energy consumption, with three-quarters of the building stock being energy inefficient.
• The proposed ETS2, part of the 'Fit for 55' roadmap, will apply to energy suppliers rather than individual consumers starting in 2025 to address the distributed nature of emission points in the buildings and road transport sectors.
• Carbon pricing alone may be insufficient to reduce building emissions because renovation is hindered by non-market barriers, including a lack of trust in energy savings and diverging incentives between tenants and landlords.
• The implementation of ETS2 risks increasing energy poverty for low-income households, who may face higher heating prices without the resources to invest in cleaner alternatives, despite the proposed Social Climate Fund.
• The author asserts that the EU should first fix the current ETS by ending free allowances for energy-intensive industries such as chemicals, cement, and steel before expanding the system.

APA

Martellucci, E. (2021). A carbon market for buildings must be constructed on solid foundations. Carbon Market Watch. https://carbonmarketwatch.org/2021/11/24/a-carbon-market-for-buildings-must-be-constructed-on-solid-foundations/

Chicago

Martellucci, Elisa. A carbon market for buildings must be constructed on solid foundations. Carbon Market Watch, 2021. https://carbonmarketwatch.org/2021/11/24/a-carbon-market-for-buildings-must-be-constructed-on-solid-foundations/.

Wikipedia

{{cite press release |last1=Martellucci |first1=Elisa |title=A carbon market for buildings must be constructed on solid foundations |publisher=Carbon Market Watch |date=24 November 2021 |url=https://carbonmarketwatch.org/2021/11/24/a-carbon-market-for-buildings-must-be-constructed-on-solid-foundations/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martellucci2021carbon, author = {Martellucci, Elisa}, title = {{A carbon market for buildings must be constructed on solid foundations}}, publisher = {Carbon Market Watch}, year = {2021}, month = nov, url = {https://carbonmarketwatch.org/2021/11/24/a-carbon-market-for-buildings-must-be-constructed-on-solid-foundations/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }