ETS 2: cracked, but not dead yet

The war in Ukraine and the resulting sharp rise in energy prices are making it harder and harder to enforce the CO2 price for buildings and road transport. While ETS 2 offers emissions savings potential, it is likely to lead to further price increases. But alternatives are lacking.

Skepticism is growing in the EU Parliament about a second emissions trading system for road transport and heating (ETS 2). Greens and Social Democrats now agree that the social burden of a sectoral expansion of CO2 pricing would be too high. And at the meeting of EU environment and climate ministers in Brussels on Thursday, many countries also expressed strong concerns about the idea of introducing a CO2 price for certain fuels by 2026.

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