From 2027, the new EU Emissions Trading System (ETS-2) is expected to put a price on CO₂ emissions from the buildings and transport sectors across Europe for the first time. Fuel suppliers will be required to purchase CO₂ certificates to cover emissions in these sectors, making ETS-2 a central instrument for achieving the EU’s climate target of reducing greenhouse gas emissions by at least 55% by 2030.
As a result, consumers can expect higher costs for fossil fuel heating and transportation. The new German government should begin preparations now to mitigate the impact of rising energy prices.
To support the social implementation of the ETS-2, the EU has established a Social Climate Fund for the period from 2026 to 2032. Member States are required to submit national Social Climate Plans detailing how they intend to use the funds. These plans offer an opportunity to strategically shape a socially just climate policy. However, for the transformation to succeed, it is essential that other ETS-2 revenues – beyond those allocated through the Social Climate Fund – are also used in a socially responsible manner. This requires anchoring socially just climate investments permanently in the federal budget.
In this paper, Germanwatch presents a 5-point plan for an effective and socially just implementation of EU emissions trading in Germany, developed in cooperation with Climate Alliance Germany, Diakonie Deutschland and 12 other partner organisations.
Das Life-Effect Projekt wird Kofinanziert von der Europäischen Union. Die geäußerten Ansichten und Meinungen sind ausschließlich die der Autor:innen und spiegeln nicht unbedingt die der Europäischen Union oder von CINEA wider. Weder die Europäische Union noch die Bewilligungsbehörde können für sie verantwortlich gemacht werden.
