Towards a socially fair implementation of the Green Deal

The EU Climate Target plan designed within the framework of the European Green Deal will trigger social and economic implications, as well as distributional impacts. This opinion analyses the impact of two of the legislative proposals from the “Fit for 55” package which contain measures to alleviate the economic pressure: the Social Climate Fund and the revision of the Energy Taxation Directive.

The fact of setting a carbon price for the building and the transport sectors within the ETS mechanism will cause an increase in the price for fossil fuels which will have significant social and distributional impacts that may disproportionally affect vulnerable households, vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport and who, in certain regions, do not have access to alternative, affordable mobility and transport solutions. Such impacts on vulnerable groups differ between Member States, and price impacts are likely to be felt more strongly in Member States, regions and population with lower average income. Nevertheless, as corollary to the fuel price increases through carbon pricing, the emissions trading generates revenues, which can be used to alleviate the burden on the vulnerable groups.

Most of the measures needed to achieve climate goals have a specific territorial dimension, and local and regional authorities are best placed to assess the necessary policies at their level.

Thus, the opinion focuses on the social consequences of the green transition and the solutions offered to address the related issues. The transition to climate neutrality is a common goal for all EU countries. This transition requires structural changes that will affect all European citizens.

  1. News regarding the draft opinion:

https://cor.europa.eu/sl/news/Pages/ENVE-9-September-2021.aspx

https://twitter.com/EPP_CoR/status/1435910206966353925

  1. International reflexions

Sustainable Energy Week https://eusew.eu/newsblog

  1. Activity plan for the rapporteur:

Timeline:

Exchange of views – 24 November 2021;

First discussion and adoption – ENVE Comission meeting- 10-11 March 2022;

Adoption on plenary – beginning of 2022

  1. Background studies, working documents