Annual costs of around €60 higher on average means new EU ETS2 requires targeted support for most affected households

With an expected introductory price of around €60 per tonne of CO₂, the annual heating costs for affected households would increase by around €60 on average across the EU.

Poland, Hungary and Slovakia are among the few Member States where average increases could reach €100–€400 a year, according to a Bertelsmann Stiftung study that was published on 21 January.

The uniform price of CO₂ under the new EU Emissions Trading System (ETS2), which will be extended to buildings in 2028, will have a very different impact depending on the region.

“Targeted support will be needed for the worst affected households”. In Germany and other western Member States, where a carbon price is already in force for buildings, costs are expected to rise by an average of €17 per household per year.

In Portugal, Ireland, Denmark and Sweden, heating could become more expensive, as carbon prices already exceed €60/t CO₂.

In Poland, Hungary, Slovakia and other Eastern European countries, decarbonisation of the building sector is less advanced and household incomes are lower. The introduction of a single EU-wide price would therefore have a much greater impact.

Rising heating costs hit low-income households hardest, since heating accounts for a large proportion of their budget. “Revenues from CO₂ pricing are sufficient to provide this support, provided that Member States use the funds in a targeted way”, explains the study.

Further information: https://aeur.eu/f/ke7 (Original version in French by Solenn Paulic)