More and more EU countries are concerned about the new European tax on CO2 emissions, but there is no support for postponing it. ETS2 is the European Union’s carbon tax, planned for introduction in 2027, which will make the use of fossil fuels more expensive for consumers. The new tax is an extension of the existing Emissions Trading System (ETS).
In some countries, concerns have arisen about the social impact of the tax. Protests have been held in France, Poland, and the Czech Republic, with calls for the introduction of ETS2 to be postponed. Other countries are also putting the brakes on.
The exact size of the price increase at the pump is difficult to predict because it depends on the market price of the CO2 emission allowances. This price can fluctuate based on supply and demand within the ETS2 system, as well as policy decisions and economic conditions.
Several studies and experts have made estimates of the possible price increases. These vary, but most studies expect an increase of about 10 to 15 euro cents per liter for both gasoline and diesel. Some estimates even go higher, depending on the CO2 price level used.
ETS2 is inevitable
In Belgium, the political party MR would prefer to abolish the so-called ETS2 system. According to George-Louis Bouchez, ETS2 is nothing more than a tax increase that will harm the economy.
He wants to stop the system through European liberals, but that won’t happen anytime soon. The N-VA, however, believes that the measure can no longer be stopped.
One-year postponement?
This is primarily because the measure was already decided in 2023. A new bill would, therefore, be required to reverse it, but the Commission has no plans to do so. Meanwhile, 18 European countries have signed a letter asking for ‘improvements’ and to mitigate the impact of ETS2.
Incidentally, emissions legislation already allows for a one-year postponement of the implementation date. If energy prices rise too high, ETS2 will not be launched until 2028. Whether this is appropriate will be decided in mid-2026.
