In 2027, the emission trade system is to cover new areas, which means that households will be required to bear additional costs for refueling vehicles or heating. Poland joined the group of reference number of the appeal, which includes Germany, Italy, Austria and Belgium. In total, 15 countries have declared the support of the initiative, while subsequent countries are to do so after the end of national procedures.
The letter of the letter, which became the basis of the appeal, emphasized the need for reform of the ETS2 system. As noted, concerns regarding price variability and social effects require reaction before the implementation of new regulations. The letter states that such activities could increase the social acceptance of the system and limit the potential negative effects on consumers.
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Risk of price shocks
At the same time, your signatories pay attention to the financial potential of the ETS2. The revenues generated by the new system will receive the Social Climate Fund and national budgets, which, according to the authors of the appeal, may allow support for low -income households during the transitional period.
However, the signatories see a serious risk associated with the current construction of the market stability reserve (IAS), which does not provide sufficient protection against price shocks. The letter indicates that the lack of clarity on the level of fees for emissions in 2027 makes it difficult to prepare appropriate support measures and compensation. It was emphasized that mechanisms, such as a price ceiling, may not be sufficient if prices significantly exceed earlier forecasts.
To limit uncertainty on the market, states appeal to the European Commission to launch the ETS auction as early as 2026, which would reduce the risk of sudden price increases in the initial phase of the system. Another postulate is to regularly publish forecasts regarding possible prices under the ETS2which would make it easier to predict the economic effects and prepare remedies.
According to signatories, an effective ETS2 reform is necessary to avoid destabilizing political and social shocks resulting from rapid changes in energy prices. As written in the appeal, “consider improvements before starting the market, so that the system can function effectively and gain acceptance of public opinion.”
