Fabian Pause, Jana Nysten, Kimberly Harder

Zeitschrift für Europäisches Umwelt- und Planungsrecht, Volume 21 (2023), Issue 2, Page 196 - 207

In December 2022, the European legislator has agreed to introduce an EU-wide cap-and-trade emission trading system for buildings and road transport. From 2027 onwards, suppliers of fuels for consumption in those sectors will have to register and purchase allowances for the GHG emissions related to their products. The number of allowances is thereby capped on EU-level, so that the measure contributes to the -55 % GHG emission reduction commitment under the EU Climate Law. As the resulting „CO₂-price“ may be passed on to final customers, and considering the recent rise in energy prices due to the Russian war in Ukraine, a number of mechanisms are foreseen to mitigate the impact in particular for vulnerable customers: The introduction of this new emission trading system will be delayed by one year, should energy prices stay high. A market stability reserve is installed to avoid heavy price fluctuations of the allowances, and their price should be limited to around 45 Euro per allowance until 2030. In addition, a „Social Climate Fund“ will be created to allow the Member States additional measures to address financial hardship. The EU „emission trading system II“, together with the new „Social Climate Fund“ thereby strikes a balance between ambitious climate protection and social compatibility.

Jana Nysten

Zeitschrift für Europäisches Umwelt- und Planungsrecht, Volume 20 (2022), Issue 2, Page 184 - 191

The EU Commission's proposal to introduce a Carbon Border Adjustment Mechanism (CBAM) is currently the talk of the town. The EU has thus presented a possible model for international CO2 reductions. This opens the door for discussions on alternatives and further developments.