Solving the Energy Poverty and Decarbonisation Conundrum with Carbon Pricing

EUKI project Distributing the Impacts of Carbon Pricing in CEE examines the effects of carbon pricing across Central and Eastern Europe (CEE), focusing on its role in incentivising emissions reductions while addressing socio-economic implications. The analysis spans macroeconomic impacts on national economies, highlighting potential benefits despite initial challenges. It underscores the importance of strategic policy measures to mitigate short-term economic impacts, enhance labour market conditions, and fortify energy security. Moreover, the project explores how carbon pricing can drive a shift from subsidised fossil fuel industries to higher-value technologies, contingent upon robust policy frameworks and market support. Recommendations emphasise the potential for well-structured tax redistribution policies to benefit vulnerable households, contributing to reduced energy poverty and greater social equity in the region.