EU's ETS2 Carbon Tax to Impact Heating Bills in 2027; Poland Seeks Delay

The European Union's ETS2 emissions trading system, slated to take effect in 2027, is poised to significantly increase heating costs for households relying on gas and coal. This new carbon tax will apply to fossil fuels used for heating, potentially raising bills for millions. Analysts estimate an additional cost of 200 PLN per ton of CO2, equivalent to 45 euros.

The ETS2 will be implemented alongside the Social Climate Fund, which member states can use to invest in low-emission transport and buildings, particularly for those affected by energy poverty. Poland is advocating for a three-year delay to the reform, pushing its implementation beyond 2030. Prime Minister Donald Tusk has warned of the potentially destabilizing effects of high energy prices, suggesting they could undermine democratic governments across Europe.