EU Emissions Trading System, Social Climate Fund and Just Transition

This research paper examines the EU's strategy to reduce greenhouse gas emissions from road transport and buildings via the Fit for 55 package and the Emissions Trading System, specifically focusing on the role of the proposed Social Climate Fund in ensuring a just transition for vulnerable households.

• The European Commission's Fit for 55 policy package targets net-zero greenhouse gas emissions by 2050 and a 55% reduction in emissions by 2030 relative to 1990 levels. This includes introducing carbon pricing for fuels used in buildings and road transport, expanding upon existing pricing for district heating and electricity.
• To mitigate the social impacts of the new Emissions Trading System for road transport and buildings (ETS2), the EU Commission has proposed a Social Climate Fund totaling EUR 72 billion for the period 2025-2032. This fund is intended to provide EU Member States with resources for income support for vulnerable households and emission reduction measures in the buildings and road transport sectors.
• The paper emphasizes that perceived fairness is the primary factor influencing public acceptance of climate policy, making the design of inclusive and fair transitions away from fossil fuels critical for political and practical reasons.

APA

Stockholm Environment Institute (2022). EU Emissions Trading System, Social Climate Fund and Just Transition. https://www.sei.org/publications/eu-emissions-trading-system-social-climate-fund-just-transition/

Chicago

Stockholm Environment Institute. EU Emissions Trading System, Social Climate Fund and Just Transition. 2022. https://www.sei.org/publications/eu-emissions-trading-system-social-climate-fund-just-transition/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=EU Emissions Trading System, Social Climate Fund and Just Transition |date=21 June 2022 |url=https://www.sei.org/publications/eu-emissions-trading-system-social-climate-fund-just-transition/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2022emissions, author = {{Stockholm Environment Institute}}, title = {{EU Emissions Trading System, Social Climate Fund and Just Transition}}, institution = {Stockholm Environment Institute}, year = {2022}, month = jun, url = {https://www.sei.org/publications/eu-emissions-trading-system-social-climate-fund-just-transition/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }