Policy Brief – Making the ETS 2 and Social Climate Fund Work

In this policy brief, EUKI project Socially Just Carbon Pricing Policies in Central and Eastern Europe has formulated the key starting points for policymakers faced with developing their national Social Climate Plans. It is based on the Policy Report Putting the ETS 2 and Social Climate Fund to Work: Impacts, Considerations, and Opportunities for European Member States.

Europe’s new carbon pricing mechanism, the ETS 2, will become a central a tool to foster the low-carbon transition and meet ambitious climate targets in the buildings and road transport sectors. On its own, the carbon price risks that vulnerable sections of European society will be negatively and unfairly burdened by rising energy costs. This is precisely why the ETS 2 is being paired with the Social Climate Fund, a mechanism to collect and channel revenues to support those who need it. In order to ensure a successful implementation, this policy brief analyses three different challenges for national policymakers when developing a national Social Climate Plan.