| Title | 13. Making the ETS2 Socially Acceptable through Carbon Revenue Redistribution and Investments |
|---|---|
| Contributor | Andreas Eisl(author) |
| Phuc-Vinh Nguyen (author) | |
| DOI | https://doi.org/10.11647/obp.0499.13 |
| Landing page | https://www.openbookpublishers.com/books/10.11647/obp.0499/chapters/10.11647/obp.0499.13 |
| License | https://creativecommons.org/licenses/by-nc/4.0/ |
| Copyright | Andreas Eisl; Phuc-Vinh Nguyen |
| Publisher | Open Book Publishers |
| Published on | 2025-12-08 |
| Long abstract | The introduction of a CO2 price for housing and mobility is a key measure to ensure that the EU will be able to achieve its climate objectives. However, without adequate accompanying compensation and investment measures, additional costs for citizens will not be socially acceptable and might lead to a reversal of climate policies. This chapter thus sets out to make recommendations on how to best design accompanying policies in the context of the introduction of the ETS2, which will broaden the scope of the European Emissions Trading System to new economic sectors (road transport, buildings, and small industries). To draw lessons from already existing instruments, this chapter studies the carbon taxation schemes of France, Germany, and Austria as well as their accompanying redistribution and investment measures. Based on this analysis, it highlights the importance of strict earmarking of ETS2 revenues and the visibility of support measures, and discusses how to best target citizens through redistributions mechanisms and balance compensation with investment tools. |
| Page range | pp. 205–222 |
| Print length | 18 pages |
| Language | English (Original) |
Andreas Eisl is a Senior Research Fellow in European Economic Policy at the Jacques
Delors Institute and Associated Researcher at Sciences Po. As a comparative political
economist, his expertise is centred on EU economic governance, macroeconomic and
budgetary policies, as well as industrial policymaking, with a particular focus on
the financing of the green transition. Currently, he works on the development of key
instruments for a clean EU industrial policy and the implementation of the reformed
European fiscal framework. Eisl holds a PhD in political science from Sciences Po and
the Max Planck Institute for the Study of Societies (MPIfG)/University of Cologne, as
well as a Master’s degree in geography from the University of Salzburg. He has taught
at Sciences Po and the Sorbonne Nouvelle.
Phuc-Vinh Nguyen is the Head of the Jacques Delors Energy Centre and a Research
Fellow on French and EU energy policy at the Jacques Delors Institute. At the European
level, his expertise is centred on the political dynamic surrounding the European
Green Deal and more precisely, the carbon markets (ETS1 and ETS2) and the gas and
electricity markets. At the French level, he works on the deployment of renewable
energy sources and nuclear energy. Nguyen holds a Master’s degree in European
Business Law Business Law (Université Jean Moulin Lyon III) and a Master’s degree
in Energy Law (Université Paris I Panthéon-Sorbonne). He teaches European Energy
Policy at Sciences Po Paris, HEC, and IRIS-SUP.