T&E’s Kädi Ristkok explains why postponing the ETS2 is a bad idea

As EU leaders meet to discuss competitiveness and soaring energy bills, Italy, Poland and Czechia are pushing to postpone Europe’s new carbon market for road transport and heating fuels (ETS2). Their concern about rising costs is legitimate. But delaying ETS2 will not protect families from the next oil and gas price shock.

Affordable, reliable energy is a basic need. Governments have a responsibility to secure it through immediate support with bills and investment that reduces households’ exposure to future crises. European leaders have already recognised access to energy as an essential service. The question is how they intend to deliver it.

For a household that depends on a diesel car to get to work, or cannot afford to replace its gas boiler, an additional carbon cost is a real concern. Telling people to buy an electric car or install a heat pump is no answer if they cannot afford the upfront investment. Governments must make those alternatives accessible before carbon pricing starts.

Yet postponement leaves these households dependent on the same fuels whose prices are squeezing their budgets today. The costs of the carbon levy pale in significance to the current petrol and diesel premium that drivers are currently paying. Postponing the implementation of the EU carbon market for heating and transport fuels does nothing to reduce their exposure to global oil markets or disruptions to gas supplies.

The governments demanding a delay should understand this particularly well.

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