ETS 2 – Risks for Climate Policy

Organised by

• Florence School of Transnational Governance
• EUI Climate Workshop

Carbon pricing is a critical element of climate policy. It is based on the "polluter pays" principle and provides an incentive to invest in clean technologies. In the European Union, revenues from the ETS can be used for investments and social goals that level the playing field for energy consumers. After almost 20 years of operation, the ETS has led to significant emissions reductions in industry and energy sectors. It is now entering a new phase—starting in 2027, the ETS system will be expanded to cover the building and transport sectors. Social climate plans to protect vulnerable households should be prepared by June 2025.

Are member states ready to implement ETS2? What are the biggest risks for climate policy? What areas need further work?

Chair:

• Jos Delbeke, EIB Climate Chair, Florence School of Transnational Governance, EUI

Presentation by:

• Joanna Pandera, Part-time Professor, Florence School of Transnational Governance, EUI

Discussant:

• Albert Ferrari, Research Associate, Florence School of Regulation, EUI