The extension of EU ETS to heating and transport fuels

• Florence School of Transnational Governance
• EIB Climate Chair - EIB Chair on Climate Change Policy and International Carbon Markets
• STG Climate

Working Group 2 as part of the EUI Climate Week

The Emissions Trading System (ETS) in Europe has been structurally extended by the creation of a separate, upstream emissions trading system for buildings, road transport and process heating, which, however, would be kept separate from the main ETS. Isn't there a risk that Member States will rely on this for meeting their effort-sharing targets rather than introduce more stringent measures at the national level?

ETS2 allowances are not fungible with ETS1, reporting and compliance are ‘upstream’, for a limited period there is a pre-determined price trigger for the injection of additional allowances. Should ETS2 rather be seen as a completely new and separate emissions trading system, with no foreseeable prospect of linking with the main EU ETS? The costs of ETS2 can be expected to be passed through to consumers of fuel, while due to the Russian invasion of Ukraine, many Member States at present subsidise the costs of energy to households and businesses. How long can this subsidisation last?

Chair: Anna Gumbau, Freelance Journalist

Speakers:

• Stefanie Hiesinger, Member of Cabinet of the Executive Vice-President for the European Green Deal, Frans Timmermans
• Joanna Pandera, President, Forum Energii
• Michael Pahle, Head of Working Group, Climate and Energy Policy, PIK
• Daniele Agostini, Head of Energy and Climate Policies, Enel

Conclusion by Peter Vis, Senior Research Associate, EUI School of Transnational Governance

This event is invitation only.