Open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2

The document argues against a proposed one-year postponement of ETS2, stating it would delay climate action and cost Member States €50 billion in lost auction revenues. The signatories call for the Social Climate Fund to begin in full-size in 2026, the application of its spending principles to the Frontloading Facility, and the submission of ambitious Social Climate Plans by Member States, specifically mentioning Denmark, France, and Germany. They further propose uncapping the fund, linking it to actual carbon revenues, and extending it beyond 2032 to support vulnerable households and micro-enterprises.

• The signatories oppose a one-year postponement of ETS2, arguing that such a delay would postpone critical climate action, increase prices in 2028, and result in a loss of €50 billion in auction revenues for Member States.
• The letter demands that the Social Climate Fund start in full-size in 2026 as planned, utilizing additional ETS1 revenues, frontloaded ETS2 revenues, and increased co-financing from Member States to support vulnerable households in the buildings and transport sectors.
• There is a call for Member States to submit ambitious Social Climate Plans (SCPs) on time, noting that major countries like France and Germany, as well as Denmark, have yet to present full public drafts.
• The authors propose several long-term adaptations for the post-2030 financial framework, including uncapping the Social Climate Fund to link it to actual carbon revenues and extending the fund as a permanent instrument beyond 2032.
• The letter suggests that Member States should supplement their Social Climate Plans with progressive fiscal policies, such as taxing aviation, wealth, and fossil fuel company profits, or redirecting fossil fuel subsidies.

APA

Carbon Market Watch (n.d.). Open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2. https://carbonmarketwatch.org/wp-content/uploads/2025/11/Open-letter-on-protecting-the-Social-Climate-Fund-following-the-suggestion-to-postpone-ETS2.pdf

Chicago

Carbon Market Watch. Open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2. n.d. https://carbonmarketwatch.org/wp-content/uploads/2025/11/Open-letter-on-protecting-the-Social-Climate-Fund-following-the-suggestion-to-postpone-ETS2.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2 |url=https://carbonmarketwatch.org/wp-content/uploads/2025/11/Open-letter-on-protecting-the-Social-Climate-Fund-following-the-suggestion-to-postpone-ETS2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatchndopen, author = {{Carbon Market Watch}}, title = {{Open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2}}, publisher = {Carbon Market Watch}, url = {https://carbonmarketwatch.org/wp-content/uploads/2025/11/Open-letter-on-protecting-the-Social-Climate-Fund-following-the-suggestion-to-postpone-ETS2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }