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Critics warn carbon price proposal would exacerbate energy poverty

(EurActiv, 27 Jul 2021) Energy poverty could be exacerbated as prices rise under the European Commission’s proposed revamped emissions trading scheme, the European Trade Union Confederation (ETUC) has warned, with other stakeholders raising similar misgivings.

Proposals under the European Commission’s Fit for 55 package include creating a new emissions trading scheme to impose a carbon price on road transport and buildings (ETS II). But stakeholders are warning that the move would hit society’s most vulnerable.

“A €5 increase in the price at the petrol pump and €35-40 per month on household energy bills will negatively affect the income of all workers,” said Ludovic Voet, ETUC confederal secretary. He added that renewable alternatives were not yet available for households.

“Renters, commuters, small business owners and many consumers will experience higher energy and transport costs without a real opportunity to shift towards alternatives in the short-term,” agreed Silke Ernst, head of Germany’s influential metalworking trade union IG Metall. 

“The potential for any legislative proposal to either exacerbate or curb energy poverty should thus always be examined,” said Sarah Mekjan of Climate Alliance, an NGO fighting energy poverty in EUrope. She noted that the new EU proposals or ETS II for road transport and buildings are no exception.

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EurActiv, 27 Jul 2021: Critics warn carbon price proposal would exacerbate energy poverty