Container ship in the port of Hamburg. The law now includes shipping for the first time.Photo: iStock/Gerard1610
At the heart of the new EU climate protection law is emissions trading via pollution certificates. A multi-billion dollar “climate social fund” was set up for “disadvantaged households and companies”.
With regard to the so-called man-made climate change, the European Parliament has decided on a massive expansion of emissions trading. On Tuesday in Strasbourg, the plenary session of Parliament approved by a large majority a reform that for the first time also includes shipping and the building sector. For them, the following will apply in the future: whoever emits “climate-damaging” greenhouse gases must buy pollution rights. EU Commission President Ursula von der Leyen spoke of a “milestone” on Twitter.
In Strasbourg, the CDU MEP Peter Liese spoke of the “greatest climate protection law of all time”. It was “supported by a huge majority in the European Parliament”, praised the MEP, who negotiated the main features of the package in a marathon meeting with the member states in December. The reform is part of the “Fit for 55” climate plan, with which the EU aims to reduce its greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels.
The European Emissions Trading System (ETS) has existed since 2005, i.e. for almost two decades. The idea: Carbon dioxide (CO₂) gets a price. If your emissions are above a threshold, you have to buy pollution certificates.
Politically desired price increase for diesel and heating oil
With the reform, shipping is now included for the first time. In addition, airlines that already need emissions allowances for flights within the EU will gradually receive fewer free pollution allowances. From 2026 they will then have to pay for it entirely themselves.
In addition, from 2027 there will be a separate trade in pollution certificates for buildings and road traffic. The prices for fossil fuels such as diesel or heating oil are likely to rise for consumers as a result. This is politically intended to encourage them to switch to “climate-friendly” alternatives.
In Germany, the so-called Fuel Emissions Trading Act has been in force for motor and heating fuels since 2021. In the introductory phase up to 2027, this initially sets a fixed CO₂ price per ton for petrol, diesel, heating oil or natural gas, which will increase every year. According to the Federal Ministry of Economics, national emissions trading is then to be transferred to the European one. However, the need for adjustment is “small”.
Billions worth “climate social fund”
In order to help disadvantaged households and companies, the EU is planning a multi-billion dollar “climate social fund” from 2026. This will help citizens “insulate their homes, install a heat pump or buy an electric car,” promised EU Vice-President Frans Timmermans, who is responsible for climate protection, on Twitter.
However, there has been massive criticism from the Greens or Social Democrats, for example, that the fund, at 86.7 billion euros, is significantly smaller than originally proposed. This is “a drop in the bucket”, criticized about the Green MP Henrike Hahn.
“Climate tariff” for third countries
In addition, the EU is introducing a kind of climate tariff for third countries, the so-called carbon dioxide border adjustment mechanism. It is intended to prevent “climate dumping”. That’s what the EU calls it when, for example, China throws products onto the European market that can be produced there significantly cheaper due to the lack of climate regulations.
In Germany, the EU agreement has met with approval from parts of the opposition and in industry. CDU leader Friedrich Merz had emphasized that emissions trading is not about bans, but about market-based approaches to climate protection. Bernhard Osburg, head of ThyssenKrupp’s steel division, called the ETS agreement a “very successful compromise”.
The reform can come into force if the member states finally give their consent. Everyone in the European Parliament hopes that this time there will not be a last-minute blockade, as was the case with the end of combustion engines. (afp/red)
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