Facilitating Socially Just Carbon Pricing Policies in Central and Eastern Europe

Extending carbon pricing to additional sectors, particularly road transport and buildings, is critical to reaching the EU’s long-term climate targets and will form a central policy of the European Green Deal framework. The increase in energy-costs from carbon pricing, however, will have a strong social justice dimension, especially in Central and Eastern European (CEE) countries with lower household incomes and more dependence on fossil energy.

A new Social Climate Fund is being developed to make sure that vulnerable households are not left behind. But much work needs to be done to understand just who should be supported, with what measures, and how these should be implemented. In the end, effectively identifying and compensating vulnerable groups is vital for carbon pricing to gain and maintain support over time.

Carbon pricing can be compatible with social goals.

Alexander Eden, Project Lead and Advisor at adelphi

Our project aimed to strengthen the knowledge base on carbon pricing for mobility and heating across Europe, in particular Poland and Romania. Our research sought to better understand the potential adverse impacts of carbon pricing on different groups and find appropriate avenues to address them. We engaged a broad range of actors, from key Polish and Romanian stakeholders to European-level policymakers, and thereby sought to bridge the gap between climate and social policy within the case countries and beyond.

Even if an EU-wide carbon price may seem some way off, it is essential to already begin building readiness. Through this project, adelphi made a significant contribution to the discussion. Important actors across the spectrum of climate and social policy fields are better able to understand the relevance of the carbon price, gauge its impacts, and develop strategies for its successful implementation, making sure that the most vulnerable European citizens are also able to share in its benefits.