The new Emission Trading Scheme (the so-called ETS2) will cover all emissions of buildings (heating) and road transport and run in parallel to the existing ETS, which prices CO2 pollution from the power sector and industry.
A landmark deal was also struck on the introduction of a new Social Climate Fund , which will channel carbon trading revenues to the most vulnerable households, helping them to transition while also alleviating the impact of the carbon price. The Fund will be of €86.7 billion. Governments could even start supporting low-income households one year before the carbon price kicks in in 2027.
On the other hand, an emergency clause was adopted. In case energy prices are too high, the entry into force of the ETS2 will be delayed by one year . also secured a cap on the price for households. To secure our climate ambitions the cap should have increased annually, but this provision will be revised in 2030.
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