Carbon Market Watch supported this REScoop open letter on protecting the Social Climate Fund, following the suggestion to postpone ETS2.

The letter signed by 43 organisations and coalitions details concerns regarding the latest developments around ETS2, and their potential implications on the Social Climate Fund.

The Council’s and Parliament’s positions on the 2040 climate target both call for a 1 year postponement of ETS2, which we strongly oppose. Delaying the introduction of ETS2 will postpone critical climate action and raise prices in 2028, while costing Member States €50 billion in lost auction revenues.

We call on the Commission to clearly and publicly communicate that the Social Climate Fund will not be impacted by a potential delay in ETS2. Instead, the Social Climate Fund should be expanded and extended. This is a vital tool to protect vulnerable households, ensure social acceptance of the transition, and hedge against potential ETS2 price increases.