Will the Fund fund enough? A conversation with stakeholders on the suitable allocation of the Social Climate Fund and expected impacts of the ETS2 on transport poverty in EU Member States
Will the Fund fund enough? A conversation with stakeholders on the suitable allocation of the Social Climate Fund and expected impacts of the ETS2 on transport poverty in EU Member States

Author(s): Rebeka Hengalová
Subject(s): Economic policy, Socio-Economic Research
Published by: EUROPEUM - Institut pro evropskou politiku
Summary/Abstract: In this policy brief, I will outline the upcoming Emission Trading System (ETS) extension to road transport and heating of households (ETS2) as this policy is directly tied to the disbursement of the Social Climate Fund (SCF or Fund). Next, I will outline the presumed impact of the ETS2 on the prices of heating and transport fuels, along with the mechanism of the Fund's allocation and suitable measures and investments financed by the Fund. Moreover, I will supplement the data with the opinions of interviewed policymakers and experts from European institutions, think tanks, Czech state representatives, and universities that helped contextualise the reality in which the SCF is to be implemented. In conclusion, I will summarise the current status quo and provide recommendations for the upcoming years of transposition, implementation and successful usage of the ETS2 and SCF policies.

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