Europe is soon planning to introduce a so-called carbon tax on the use of fossil fuels for heating and transport, however, it raises concerns about the increase in social inequality, writes Politico.
The new system, which will run alongside the existing European Union Emissions Trading System, is part of the bloc’s efforts to make greener its economy and achieve carbon neutrality.
Additional costs should serve as a driving force for residents to insulate their homes better and switch to using electric cars or public transport. Although the European Parliament predicts that the carbon tax will be relatively small, there is growing concern that the poorer groups of society, who have limited opportunities to become «greener» in their habits, will become even poorer.
Frans Timmermann, the European Commission’s executive vice-president for the European Green Deal, sought to allay those concerns, telling Belgian television:
«I guarantee you: People who are struggling will not suffer from this.»
The 86,7 billion fund, which is intended to support the most vulnerable households, will start operating in 2026 – a year before the carbon tax comes into force. Researchers and anti-poverty activists warn that this may not be enough. Sabrina Iannazzone, the spokeswoman for the European Anti-Poverty Network, said there was a risk of neglecting vulnerable groups in society.
Switching to greener vehicles and heating results in big savings.
However, buying a «cleaner» car, warming a house, or replacing a gas-heating boiler with a heat pump are also substantial costs before the benefit is visible.
MEP Sara Matthieu, who is working to make the carbon tax socially fair, said that in practice it would be difficult for vulnerable households to cope.
Skeptics point out that the support fund has several shortcomings. First of all, the amount of funding is said to be too small. According to Matthieu, in Belgium, the renovation costs in the Flanders region alone could reach six billion euros a year, and each member state will have to invest heavily in the fund.
Others point out that the moment chosen is not the right one. The fund will only start operating a year before the tax takes effect, and it is said to be too late to fix everything.
Countries need to create plans to provide direct support to households and to support long-term investments such as building renovations and buying greener cars. The ability of countries to adequately build a support system is a cause for concern, especially because getting the support to actually reach the goal is already difficult.
Focusing on supporting vulnerable households is not a panacea either. The fact that these residents are not left behind directly depends on other conditions as well. One of these is the decision to stop selling cars with internal combustion engines after 2035, and there is also the adjustment of energy efficiency rules, and also the end of support for heating boilers that use fossil fuels, which are still widely used in countries such as Greece and Poland.
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