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Why a carbon tax is the most effective price signal for the building sector
(EurActiv, 22 Jun 2021) A carbon tax on the fuel used to heat Europe’s buildings is the most effective price signal to decarbonise Europe’s building stock, which is in desperate need of renovation to meet the EU’s climate ambition, writes Oliver Rapf.
Oliver Rapf is the executive director of the Buildings Performance Institute Europe.
In mid-July, we’re expecting a proposal for a reform of the EU Emissions Trading Systems (EU ETS) and the Effort Sharing Regulation (ESR) – the cornerstones of the EU’s climate regime, which regulate the world’s biggest carbon market.
Currently, emissions from buildings are not covered under the EU ETS, but regulated by national targets of the ESR. To achieve the 2030 and the 2050 climate-neutrality targets in the buildings sector, an additional carbon price signal alongside regulatory policy instruments can be an effective tool to drive necessary investments.
Carbon pricing isn’t a silver bullet for building renovation, but done right, it is a valuable addition to a well-designed policy mix
Considering its long-term investment cycles, fragmented ownership structure, and persisting non-economic barriers, a carbon price cannot be the silver bullet to reduce buildings’ climate impact, but rather a valuable addition to a well-balanced policy mix.
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EurActiv, 22 Jun 2021: Why a carbon tax is the most effective price signal for the building sector
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