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Carbon market overhaul shifts EU’s climate policy focus on industry, fairness
(EurActiv, 20 Jul 2021) With its proposed reform of the EU Emissions Trading Scheme (EU ETS), the European Commission is bringing carbon pricing policies to new areas such as shipping, road transport, and buildings. However, it is the fate of industry and ordinary people that is getting all the political attention.
The EU ETS currently covers the power sector, the manufacturing industry, and intra-EU flights.
With the reform, the Commission proposes to extend the EU carbon market to shipping and aviation while setting up a new separate ETS to tackle emissions from transport and heating fuels.
The aim is to cut the EU’s carbon emissions by 55% before the end of the decade and bring clean energy to areas like transport, buildings and industry, where fossil fuels still dominate and emissions reductions are more costly to achieve.
But European Commission President Ursula von der Leyen also made it clear: Decarbonisation efforts cannot come at the expense of businesses and workers, who need to come out stronger from the green transition.
“The European Green Deal is our growth strategy,” von der Leyen insisted when presenting the EU’s new ‘Fit for 55’ package of climate policy proposals on Wednesday (14 July).
And fairness will be one of the key priorities when extending carbon pricing policies to new areas, with the creation of a new social climate fund to shield the poorest households from higher fuel prices.
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EurActiv, 20 Jul 2021: Carbon market overhaul shifts EU’s climate policy focus on industry, fairness
