"Are heating bills rising?
Timmermans describes the basic idea of the overall package as follows: "Give CO₂ a price and give a bonus for climate neutrality." This means that all citizens in the EU know what to expect. Those who heat with oil or gas today will have to pay more tomorrow. This is implemented using a well-known instrument: trading in CO₂ certificates, or ETS in English. From 2026 on-wards, utilities should have to buy these certificates; as the total volume will decrease, the price for it is likely to increase. Experts anticipate that the price per tonne of CO₂ in this emissions trading system could rise to 200 euros by 2030. For comparison: the CO₂ price introduced by the federal government at the beginning of the year is now 25 euros per ton. It can be assumed that the oil and gas suppliers will pass on at least part of the costs to the end customers. Homeowners should be encouraged to install climate-neutral heating.
Is the price of petrol rising?
Road traffic should be part of the new ETS, which is why the same applies here as above: Anyone who will still be driving a petrol or diesel in a few years' time will have to pay more. The development of cars is also influenced by the fact that the EU Commission wants to reduce the fleet emissions of car manufacturers to zero by 2035. That would be equivalent to the end of the fossil combustion engine for new cars. The industry has already embarked on this path, almost all manufacturers are switching to the production of electric cars. Politicians hope that with the onset of mass production, prices will fall and driving a car will even become cheaper in the foreseeable future. The problem here is the charging infrastructure for e-cars; the EU Commission wants to oblige the member states to invest heavily in charging stations.
Do we need a social balance?
The EU Commission is convinced of this. "We have to help those for whom change will be the toughest. We must not leave anyone behind," said Timmermans. The new ETS system for buildings and traffic will, however, have direct consequences for the wallets of many citizens. That is why the commission is proposing a climate social fund, into which 25 percent of the income from the ETS should flow. According to Timmermans, that will add up to 72 billion euros between 2025 and 2032. The member states should bring in the same amount again, which would end up with 144.4 billion euros. This is intended to flow direct financial aid to poorer households or to subsidize the purchase of climate-neutral heating and cooling systems as well as e-cars.
Where should the electricity come from?
On Tuesday, the Federal Ministry of Economics also noticed that this change is increasing the demand for electricity. Since this should be climate-neutral, wind power and photovoltaics must be massively expanded. According to the commission, the share of renewable energies in primary consumption should be 40 percent by 2030. For comparison: in 2020 it was around 15 percent. So the EU Commission is also tightening the targets for energy efficiency. Companies, municipalities and households must save energy for the plan to work.
How does the Commission intend to ensure the competitiveness of companies based in the EU?
So that companies between Helsinki and Porto continue to have opportunities on the world market, there should be a "border adjustment". From 2026 on-wards, it will be paid by companies that import cement, fertilizers, electricity and products made of iron, steel or aluminum into the EU. For every tonne of CO₂ produced, they have to purchase a certificate, the costs of which are based on European emissions trading.
The Commission emphasizes that this instrument is not protectionism and complies with the rules of the World Trade Organization: It is intended to encourage third countries to reduce their emissions or to introduce similar instruments. Should a similar mechanism exist in the country of origin, these payments would be offset. The fact that the EU will stop distributing free CO₂ certificates to energy-intensive industries after a transition period annoys parts of the industry. Criticism also comes from the Leyens party, the CDU. "The CO₂ penalty taxes are simply not WTO-compatible and inevitably lead to trade disputes," warns EU MEP Jens Gieseke and complains about "immature political concepts", including the ban on combustion.
What will change for shipping and air traffic?
Airlines have to be prepared for the fact that the free pollution rights will disappear over time. The CDU environmental expert Peter Liese welcomes the fact that shipping is being included in emissions trading for the first time: "The rule that every ship that calls at a port in the EU is made responsible, instead of the burden only being on European shipping companies, is the right way." Von der Leyen points out that a cruise ship emits as many pollutants as 80,000 cars."
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