With ETS revenue set to increase, how can we insure revenue is spent in a way that achieves maximum social and climate benefit?
The latest revision of the EU ETS extends the polluter pays principle, with the creation of a separate carbon market (ETS 2) for buildings and transport emissions that will start in 2027.
ETS 2 revenue will fund the creation of the Social Climate Fund (SCF). Valued at €86 billion, the SCF highlights the need to consider the social impacts of carbon pricing and is the EU’s first instrument to specifically address the needs of vulnerable households, transport users and micro-enterprises in the energy transition
The importance of dedicating ETS revenue to climate action is also visible through the increased funding and geographical expansion of the Modernisation Fund, which aims to improve the energy systems of lower income member states.
Persistent loopholes and a lack of transparency within the Modernisation Fund mean that, despite the climate emergency, investments in fossil gas continues across Europe: a misuse of EU ETS funds that threatens the EU’s chances of reaching net zero by 2040 and maintaining a livable planet.
The eighth ETS Talk will explore how the use of revenue from the ETS presents tangible risks, but also offers a unique opportunity to create co-benefits from carbon pricing.
- How can the Modernisation fund increase its climate impact? How can civil society spur this change?
- How will the ETS 2 and the Social Climate Fund work in practice?
- What is the role of ETS revenue in achieving a just transition?
|15:00 – 15:05||Opening remarks|
Francisco Ferreira, ZERO
|15:05 – 15:25||Increasing the climate benefit of the Modernisation Fund|
Morgan Henley, Bankwatch
|15:25 – 15:45||ETS 2 and the Social Climate Fund|
Eleanor Scott, Carbon Market Watch
|15:45 – 16:05||Q&A and discussion|
|16:05 – 16:15||Closing remarks|
Sam Van den plas, Carbon Market Watch