Participating in an online event organised by the EUI School of Transnational Governance on Tuesday 20 July, European Commission President Ursula von der Leyen discussed the Commission’s decision to propose the creation of a new emissions trading system (ETS) covering emissions from road transport and buildings (heating) as part of the ‘Fit for 55’ legislative package, presented on 14 July (see EUROPE 12762/1).
“We know that carbon pricing works and that it is the most technology-neutral and cost-effective solution”, said Ms von der Leyen.
She went on to stress the Commission’s intention to proceed gradually, with the new ETS coming into force from 2026 “so that the price can gradually increase”.
She said the EU has “the necessary instruments to make sure that it’s a smooth introduction”.
This ETS will be accompanied by a ‘Social Climate Fund’ (see EUROPE 12762/6), which will be introduced in 2025, i.e. before the launch of the new ETS, the President also recalled, in the hope of reassuring those who are worried about the social consequences (see EUROPE 12764/11).
She added: “If we would not introduce this emission trading system, then we do have to acknowledge that we will have to make the transition anyhow towards minus 55% (of greenhouse gas emissions) in 2030 (...), but without a social climate fund then, (because) no ETS means no Social Climate Fund”. (Original version in French by Damien Genicot)