Several European Union member states are advocating for a postponement of ETS2, the bloc’s proposed carbon pricing mechanism for road transport and heating fuels, citing concerns about rising household energy costs. Italy, Poland, and Czechia have presented postponement proposals during discussions on EU competitiveness and energy affordability. Proponents of the delay acknowledge that carbon pricing creates real financial pressures for households already struggling with energy expenses.
However, experts counter that delaying the program will not shield households from future oil and gas price volatility. The argument emphasizes that postponing ETS2 leaves families dependent on the same fossil fuels whose market prices currently strain household budgets. They note that the additional costs from carbon pricing are modest compared to existing petrol and diesel price premiums. Delaying implementation does nothing to reduce vulnerability to global commodity price fluctuations or potential supply disruptions affecting gas imports.
The three nations advocating delay have particular exposure to energy market risks. Italy relies heavily on gas imports, while combined oil and gas accounted for approximately 40 percent of Czechia’s energy supply in 2024. Poland’s domestic coal reserves do not shield consumers from international oil pricing. Advocates for the program argue that reducing household oil and gas consumption through targeted investments would strengthen energy security across these countries.
ETS2 is scheduled to commence in 2028 and is designed to generate revenue for climate and social initiatives. Under the Social Climate Fund’s baseline allocations covering 2026–2032, Poland could receive up to approximately €11.4 billion in EU funding, Italy €7 billion, and Czechia €1.6 billion, supplemented by national co-financing. These resources could support programs including affordable electric vehicle leasing, public transportation improvements, and home energy efficiency upgrades targeting lower-income households.
Funding mechanisms are already available to support household transitions ahead of ETS2 implementation. The Social Climate Fund commenced in 2026 with early financing from existing carbon market auctions, and the European Investment Bank provided a €3 billion frontloading facility for governments to finance advance investments. Sweden has begun implementing its €533 million Social Climate Plan, with an electric vehicle purchase and lease assistance program that opened applications in March and approved nearly half of over 12,000 received applications by June.
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