Decarbonizing buildings and transport - a new future for EU emissions trading

Show notes

In the finale of "Green Deal – Big Deal?" Season 1 we dive deep into EU ETS2, the EU's expanded emissions trading system, now encompassing buildings and transport.

Hosts Ewa Iwaszuk and Aaron Best are joined by Sibyl Steuwer from the Buildings Performance Institute Europe and Matthias Duwe of the Ecologic Institute to discuss the complexities of integrating buildings and transport into the EU’s emissions trading system, exploring the challenges and opportunities this expansion presents.

In the conversation, we unpack the concept of emissions trading, a market-based mechanism to determine a price for carbon through the trading of emission permits. Our guests explain the importance of complementary policies alongside the ETS to ensure effective decarbonization of the building and transport sectors – including reducing harmful subsidies, getting rid of polluting options and technologies, and creating attractive alternatives to switch to. The discussion addresses the fragmented nature of the building sector, the investment hurdles, and the necessity of aligning incentives for property owners and tenants to foster energy-efficient renovations and construction. We ask our guests about the Social Climate Fund and its potential to mitigate some of the equity concerns accompanying the rollout of ETS2.

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