Close to 50 companies, industry associations and civil society organisations have called on European governments to finalise the transposition of the EU’s second Emissions Trading System (ETS2), and start using the revenues generated to support vulnerable households.
A letter signed by groups including ABB, Danfoss, Iberdrola, Ørsted, E-Mobility Europe, Transport & Environment (T&E) and the European Consumer group (BEUC) argues that ETS2 revenues could be used to support the installation of heat pumps, EV leasing schemes, public transport improvements, or simply to shield low-income motorists from price increases.
‘Using frontloaded revenues from the EU’s new ETS2 now, to support lower-income households’ shift to greener alternatives, can shield Europe’s citizens from future crises,’ T&E said in a statement.
EV transition
“High prices aren’t caused by ETS2, they’re caused by Europe’s reliance on imported fossil fuels,” commented Federico Terreni, climate policy manager at T&E. “Delaying the policy is a costly mistake that starves governments of the funds required to transition drivers off fossil fuels for good.”
Sweden has already taken the initiative to start using ETS2 revenues to help people make the switch to electric vehicles. With diesel prices reaching record levels, the Swedish government drew down ETS2 revenues to support motorists, setting a template for others to follow, T&E noted.
ETS2 is set to enter full implementation at the start of 2028.
‘Level playing field’
“ETS2 is essential to creating a level playing field for road transport across Europe,” added Ioana Petcu, public affairs director at E-Mobility Europe.
“Consistent implementation, combined with effective use of the Frontloading Facility, can provide the certainty and investment conditions businesses need to accelerate the transition to zero-emission mobility and reduce transition costs for consumers over the long term.” Read more here.
