
Dilution doesn’t fix pollution: ETS2 must work for people and climate
The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.
In the EU, progress has been made in the introduction of emissions standards and the increased uptake of electric vehicles, however emissions levels for road transportation still remain stubborn. This is partially due to the steady increase in the number of vehicles on the roads, with passenger car emissions in the EU increasing by 5.7% since 2000. Meanwhile heavy duty vehicles are responsible for 27% of climate emissions from road transport, with trucks and buses having a bigger climate impact than all the flights within the EU.
Road transportation is also a leading cause of air and noise pollution, which are harmful to people’s health. Many lower income people and rural populations continue to experience transport poverty and cannot access certain economic and social services due to a lack of transport options.
Stubbornly high emissions from road transport was the motivation behind the creation of the Emissions Trading System for road transport (ETS2), starting in 2027. By putting a price on CO2 emissions from road transportation, member states are encouraged to increase their ambition and strengthen policies to decarbonise the sector. The ETS2 and the newly created Social Climate Fund will provide revenue to member states to increase investment in low-carbon transport and to combat transport poverty.
Carbon Market Watch encourages and supports the rapid decarbonisation of the road transport system internationally and within the EU.
When it comes to road transport, Carbon Market Watch focuses on:
“The creation of the Emissions Trading System for road transport (ETS2) is a positive step towards the deep decarbonisation of road transport emissions. However, ETS2 will not be enough alone. “
Eleanor Scott
Expert on carbon markets
“The creation of the Emissions Trading System for road transport (ETS2) is a positive step towards the deep decarbonisation of road transport emissions. However, ETS2 will not be enough alone. “
Eleanor Scott
Expert on carbon markets
An ETS2 that decarbonises road transport in a fair and effective manner that maximises the benefits to the climate and people.
The correct policy mix to complement ETS2, including investing in alternative modes of low/no carbon transport and promoting active transportation, such as cycling.
Spending ETS2 and Social Climate Fund revenue to help decarbonise road transport and reduce transport poverty.

The Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings.

As the European Union institutions prepare to embark on the final negotiations around the bloc’s diluted 2040 climate target, there is one last chance to shore up some of the goal’s loopholes for the good of the environment and society.

Carbon Market Watch is campaigning alongside eight EU and national civil society organisations for the imminent Emissions Trading System for road transport and buildings and the Social Climate Fund to deliver a fair and effective decarbonisation transition.

The Social Climate Fund (SCF) is the first EU fund developed with the explicit purpose of alleviating energy and transport poverty resulting from the transition
sam.vandenplas[at]carbonmarketwatch.org
emma.wikstrom[at]carbonmarketwatch.org
wijnand.stoefs[at]carbonmarketwatch.org
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