As part of its Fit-for-55 package, the European Commission proposed the strengthening of emission trading and the creation of a separate ETS for buildings and road transport (BRT ETS), combined with a new Social Climate Fund to address its social impacts. While extending carbon pricing to sectors not yet covered is an obvious choice from an economic point of view, it is very contentious politically. Particularly important open questions are (a) how high and volatile the price in the new system will be, and related (b) what the distributional implications between households and Member States will be. The aim of this session is to shed light on these issues drawing on new economic analysis, and based on this to discuss the mechanisms proposed by the EC to stabilize prices and balance distributional impacts. To that end, the session will bring together (national and EU) policy makers and academics, including members of EAERE’s Policy Outreach Committee (POC). More broadly, the session will also reflect on insights for policy outreach.

Panelists