A senior German politician has expressed concerns over the European Union’s carbon emissions trading scheme, which is set to expand to include buildings and transportation from 2027. Matthias Miersch, the leader of the Social Democratic Party’s parliamentary group, has questioned the free market’s ability to determine the price of carbon credits, citing the uncertainty surrounding the scheme’s impact on fuel and heating costs.
Miersch argued that the government must ensure social cohesion is not compromised in the pursuit of climate goals and that the public must be protected from the negative consequences of the carbon pricing mechanism. He suggested that the government could implement measures to cap or corral the market, such as a price ceiling or price corridors, to prevent the scheme from overburdening the population.
The politician also emphasized the need for reliable support for citizens transitioning to climate-friendly alternatives, such as heat pumps and urged the government to provide clarity on the future of incentives for these technologies. Miersch warned that without swift action, the government risked losing control of the situation, which could have far-reaching consequences.
The European emissions trading scheme, which is set to expand to include buildings and transportation, has a limited number of carbon credits and the price of these credits is determined by the market. Miersch’s proposals aim to mitigate the potential negative impacts of the scheme on the public, while still achieving the desired climate goals.