From 2027, the European Union Emissions Trading System (‘ETS2’) will cover new sectors that have long been left behind when it comes to decarbonisation.
If we are to achieve a 55% reduction in greenhouse gas emissions by 2030 compared with 1990 levels, and achieve climate neutrality by 2050, extending carbon pricing to the road transport and buildings sectors and to certain industries will require accompanying measures and binding rules.
The report ‘A Study of Supporting Measures Promoting Decarbonisation in the Sectors Covered by ETS2’, published on Friday 12 September and written by the UK consultancy Ricardo and Germany’s Oeko-Institut for the European Commission’s Directorate-General for Climate Action (DG CLIMA), identifies 21 best practice measures and three high-potential measures for the future to ensure a fair, efficient and sustainable transition.
In road transport, which is responsible for almost 75% of transport-related emissions, policies combine economic incentives and regulatory standards. The document cites the example of Austria, which has increased its ‘NoVA’ registration tax. This can be up to 80% of the net price for the most polluting vehicles, generating estimated savings of 669,000 tonnes of CO2 for new registrations in 2025, over the lifetime of the vehicles concerned.
For public transport, the national KlimaTicket Ö pass attracted almost 250,000 users by 2023, i.e. around 3% of the Austrian population, at a cost of around €3 per day, helping to avoid 65,000 tonnes of CO2 in 2021.
In the buildings sector, which accounts for 40% of the EU’s energy consumption, the report highlights the key role played by interest-free loans for energy renovations, VAT reductions and information programmes in countering the high initial costs and lack of awareness among households.
In the industrial sector, financing schemes, energy audits and voluntary agreements appear to be effective, particularly for SMEs, which are faced with a lack of technical resources.
These measures will be supported by the Social Climate Fund and its €86.7 billion over the 2026-2032 period to help vulnerable households and small businesses cope with rising energy and fuel prices.
The study: https://aeur.eu/f/igf (Original version in French by Nithya Paquiry)