If households are faced with rising costs as a result of the potential introduction of an emissions trading scheme (ETS) for the road transport and buildings sectors, the European Commission will ensure that a “climate action social fund” is in place, said the Commission’s Executive Vice-President in charge of the European Green Deal, Frans Timmermans, on Wednesday 9 June.
Speaking at the plenary session of the European Economic and Social Committee (EESC), the Vice-President said that the fund would be financed by part of the revenues generated by the ETS for road transport and buildings (see EUROPE 12702/8), so that Member States could compensate for any negative social effects, especially for the most vulnerable citizens.
He also added that: “We must protect vulnerable households against potential price increases for heating and transport fuels. So if we were to introduce emissions trading for these fuels, that (...) must come with a proposal for the social impact at the same time..
Belgium wants guarantees
Mr Timmermans’ announcement could reassure some Member States concerned about the social consequences.
While the creation of an ETS for road transport and buildings is supported by some countries such as Germany, Eastern European Member States have already expressed serious reservations. Between these two poles, other countries, such as France and Belgium, are cautious.
“We want guarantees of equity and solidarity and to address the social impacts before households are confronted with a carbon price”, said Belgian Minister for Climate Action Zakia Khattabi in a press release published on 8 June.
He also added that: “A carbon price is useful, but (...) the funds levied must be redirected to households and businesses”.
She said that “strong regulatory measures” such as harmonised norms and standards for heating and cooling are “at least as important as the carbon price”.
See the press release (in French): https://bit.ly/2TSlCUK (DG)