Policy Brief | Will the Fund fund enough?
There is a plethora of ways in which the ETS2 revenues and Social Climate Fund financing can support decarbonisation among lower-income strata, accounting for differing needs of communities, regions and countries. When addressed in a timely manner, these initiatives can both serve the green and just transition. How exactly can the Fund be allocated and what are its capacities are the guiding questions of this policy brief, written by Rebeka Hengalová as part of the Think Visegrad research fellowship.
31. December 2024
One expert views ETS2 as a tool with the potential to increase social fairness. Similarly, another interviewee expressed that as 100 % of ETS revenues must be used for climate-conscious investments, there should be a clear indication of what will be financed by the revenues and, thus, what the citizens of MS will get in return for emission trading. Therefore, the SCF should always be communicated alongside the ETS2 as it is a clearly designed redistribution tool, allowing vulnerable strata of society to partake in the transition. From this perspective, the household transition from climate-harming goods to climate-friendly, sustainable and ultimately more affordable goods and practices should be widely understood. As one expert remarked, the sooner we transition, the sooner the bills will be cheaper.
You can read the full paper in English under the PDF button.
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