Socially Just Carbon Pricing Policies in CEE

Energy cost increases resulting from carbon pricing have a strong social justice dimension, particularly in Central and Eastern European (CEE) countries with lower household incomes and more dependence on fossil energy. Effectively identifying and compensating vulnerable groups is critical for carbon pricing to gain and maintain support. Though both Poland’s and Romania’s national policy frameworks include policies on energy poverty and efforts to address emissions in the building and transport sector, neither country is sufficiently prepared for the effects of an extended carbon price on these sectors.

Railway transport route; Photo © pixabay

The project team addressed a varied target group consisting of national and local policymakers in climate and social politics, climatologists and civil society groups. Activities aimed to enable them to start planning for extended carbon pricing in the transport and building sectors, bridge the gap between climate and social policy, and develop the according policies. First, the project team conducted a quantitative study to assess the distributive impacts that carbon pricing on transport and heat has on Romanian and Polish households. Second, it conducted individual and focus group interviews to ensure that future policies respond to citizens’ actual needs. The focus groups were then supplemented by policy labs, where representatives of the climate and social policy community gathered to develop policy recommendations based on the study and the findings of the focus groups. The results were then disseminated to policy makers and experts in CEE countries through a high-level seminar, a series of three policy briefs, and an online training in carbon pricing. Furthermore, a policy workshop in Brussels ensured that the findings were made available to policy makers at the EU level. The insights from the project thereby aimed to spread knowledge on options for socially just carbon pricing, increasing its societal acceptance and thus laying the foundation for more ambitious climate policy in the region.

• Study to improve decarbonisation policy: As part of the project, a comprehensive study examined the impacts of carbon pricing in the transport and heating sectors on various income groups in the EU member states. The study also identified patterns of vulnerability and examined how particularly vulnerable groups can be supported. The results help to make the decarbonisation process socially balanced – in line with the revised ETS Directive and the Social Climate Fund Regulation. 
• Knowledge-sharing on the development of social climate plans: At five national and international events, more than 100 stakeholders from nine EU member states were informed about the upcoming carbon pricing in buildings and road transport (ETS 2). On this basis, they discussed possible distribution effects and suitable policy measures to mitigate them. With the knowledge gained, these actors can help to boost the effectiveness of social climate plans in their countries. 
• Increased public awareness: At least ten publications and press interviews in the Polish, Romanian and international media shared and enhanced knowledge of ETS 2 and the Social Climate Fund. 
• Political influence: In Romania, the project partner, the Centre for the Study of Democracy (CSD Romania), was directly involved in the Presidential Working Group on the Social Climate Fund. It made a significant contribution to a white paper that served as the basis for the preparation of the national social climate plan.