EPP attacks planned CO2 price on gas and heating oil

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🗞️ Driving the news: The European People’s Party (EPP) is calling for a recalculation of the upcoming EU carbon pricing system for buildings and road transport, known as ETS 2, citing pressure from several member states to delay and weaken the measure
• ETS 2, set to introduce a CO₂ price on heating oil and natural gas from 2027, has sparked concern over its potential impact on households already burdened by inflation and high energy prices

🔭 The context: ETS 2 is a core part of the EU’s “Fit for 55” climate package, aimed at slashing emissions 55% by 2030
• Unlike the existing Emissions Trading System (ETS), which covers heavy industry and power generation, ETS 2 targets emissions from the building and transport sectors—two major but harder-to-decarbonise areas
• While the legislation was passed in 2023, its implementation is politically sensitive, especially with European elections approaching

🌍 Why it matters for the planet: Delays or dilution of ETS 2 could slow the EU’s decarbonisation progress in sectors crucial to long-term climate goals
• Introducing carbon pricing for heating and fuel is seen by many experts as necessary to drive investment in energy efficiency and low-carbon alternatives
• However, without social protections or clear communication, the measure risks backlash, particularly among lower-income households

⏭️ What's next: The European Commission and Council will need to respond to growing calls from member states and parliamentary groups for adjustments to ETS 2
• Potential compromises could include phased rollouts, price caps, or increased support from the Social Climate Fund
• Final decisions will likely be shaped by electoral dynamics and public sentiment ahead of the June 2025 EU elections

💬 One quote: “The pressure from member states shows that ETS 2 needs a reality check before we burden citizens with new costs.” – EPP spokesperson

📈 One stat: Buildings and transport account for roughly 40% of the EU’s total greenhouse gas emissions, making them central to any long-term decarbonisation strategy

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