Criteria for an effective and socially just EU ETS 2

In July 2021, the European Commission proposed introducing an emissions trading system for transport and buildings. Does the proposal meet the requirements of effective climate action and social compatibility? Where should improvements be made? These questions are answered by the study “Criteria for an effective and socially just EU ETS 2 – Assessment of the EU Commission’s Proposal on an EU ETS for buildings & road transport (EU ETS 2)”, which was prepared by the Forum Ökologisch-Soziale Marktwirtschaft and the Forschungsstätte der Evangelischen Studiengemeinschaft on behalf of Germanwatch, Klima-Allianz Deutschland, WWF Deutschland and CAN Europe. The study shows that a carbon price for buildings and transport at EU level can make sense – but only as part of a broad mix of instruments, if a price corridor is in place, and in combination with a well-equipped, clearly regulated Social Climate Fund.