Carbon tax on buildings and transport delayed to 2028 under EU climate deal

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🗞️ Driving the news: The European Union has reached a deal to delay the implementation of its carbon tax on buildings and road transport until 2028
• The delay aims to mitigate potential economic impacts, particularly for low-income households, but critics argue it hampers the transition to a greener economy

🔭 The context: The EU's revised emissions trading system (ETS2) will eventually cover 75% of emissions across the bloc
• The delay in applying carbon pricing for homes and vehicles gives time to assess its impact and adjust policies to prevent energy poverty
• A key aspect of the deal is the creation of a Social Climate Fund to support vulnerable communities

🌍 Why it matters for the planet: The delay in the carbon tax on buildings and road transport may slow down efforts to reduce emissions
• Despite the setback, the EU aims to enhance the role of clean technologies and ensure a fair transition
• However, maintaining polluting credits for industries raises concerns about the effectiveness of the carbon market in achieving climate goals

⏭️ What’s next: The delay offers a chance to refine the ETS2 mechanism, but pressure will mount on EU member states to ensure timely, fair, and effective implementation. This includes using carbon revenues to support the clean energy transition and addressing climate vulnerability.

💬 One quote: "Member states need to ensure a timely, fair and effective entry into force of ETS2 and secure the strong protection and enhancement of the role of the Social Climate Fund." — Sven Harmeling, Climate Action Network Europe

📈 One stat: The ETS2 aims to cover 75% of emissions across the EU, with emissions from aviation and maritime transport already included as of 2024

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