Carbon pricing

Carbon pricing in transport and heating has an important role to play in making polluters pay and ensuring the EU reaches its climate targets. Through our work with partners from the LIFE Effect project, we highlight that the new EU carbon pricing scheme (ETS-2) will only be effective under certain conditions. 

LIFE Effect puts civil society across the EU in the driver’s seat to help national policymakers navigate the design of socially fair and environmentally effective carbon pricing and revenue use for buildings and road transport.

First, high-emission countries like Germany, France, and Italy must take additional measures to cut emissions to prevent carbon pricing from driving up costs across the entire EU. Second, revenues must be distributed in a transparent way that benefits all citizens and especially those strongly affected by ETS-2. The Social Climate Fund is a first step in that direction, but it remains insufficient in size and scope.