Fairness and acceptability of environmental externality pricing in Europe

Policy Study

05/05/2023

Environmental externality pricing has been long promoted to address environmental problems. The theoretical advantages of this type of strategy in terms of efficiency and effectiveness has however not been sufficient to ensure its widespread adoption in practice.

Environmental externality pricing has indeed faced resistance, in particular for being perceived as unfair, inequitable and/or unacceptable. This study explores this burning issue, by focusing on climate change mitigation in the European Union. More precisely, it interrogates how the EU has addressed the interrelated issues of acceptability, fairness and equity in a series of measures in this area. These are the EU emission trading system (ETS) and three proposals contained in the Fit for 55 Package: the proposed revision of the EU-ETS, the revision of the ETD, and the introduction of the EU- CBAM.

By providing a systematic analysis of the aforementioned measures, we seek to bring clarity to the EU climate change policy that can serve to improve the policy-making process. This discussion is particularly timely as the three proposals represent key measures in achieving EU climate objectives. The current context, in particular the remaining consequences of the COVID pandemic and the Ukraine war, have been putting pressure on EU institutions. Energy and food price rises make adopting externality pricing policies more difficult to achieve. The failure to adopt the package, or the adoption of watered-down measures, could put at risk EU’s fulfilment of its obligations under the Paris Agreement.

Network
Friedrich-Ebert-Stiftung
Find all related publications
Publications
28/05/2024

The real effects of Next Generation EU

Recovery Watch Series
22/05/2024

A positive narrative for a Just Transition

An approach to a more people-centred communication
15/05/2024

Ecosocial food policies – proposal for a new social-democratic approach

FEPS YAN series
13/05/2024

How can RepowerEU consolidate recovery?

Recovery Watch series
Find all related Progressive Post
Progressive Post
22/05/2024

Navigating the greenlash

Putting people at the heart of climate action in Europe
27/02/2024

European agriculture: it’s about farmers’ income, stupid!

08/02/2024

A just transition in crisis mode

Find all related events
Events
Upcoming
24/06/2024
Košice, Slovakia

Who will pay for the green transition?

Past
13/06/2024
FEPS HQ, Brussels (Hybrid)

Advancing an Energy Minimum Right

15/05/2024
FEPS HQ, Brussels

A new narrative for a just transition?

Policy study launch
Find all related news
News
24/01/2024

Spanish Minister Teresa Ribera awarded FEPS ‘Progressive Person of the Year’

11/07/2023

A new social contract for the well-being of people and the planet

Call to action on Just Transition
07/02/2023

New study on how and why social issues have increased in prominence during the EP negotiations

Progress towards inclusive economic transition but need for further improvements in terminology and framing of vulnerable groups
13/01/2023

New manifesto giving international impetus to Lula da Silva’s environmental policy

FEPS President, among the 50 scientists and former politicians from Brazil and Portugal who signed the manifesto
Find all related in the media
In the media

Ласло Андор: Европа трябва да създаде нов модел за икономически растеж

by dir.bg 14/03/2024
'Europe must create a new model for economic growth'. Interview by Laszlo Andor, FEPS Secretary General

Цената на прехода – зелен, дигитален и демографски

by BNT 13/03/2024
'The cost of transition - green, digital and demographic' BNT Interview with László Andor about the three major transformations the world is facing.

Teresa Ribera, premiada por su labor en política internacional

by El Plural 26/01/2024
Teresa Ribera has been recognized by FEPS with the 'Progressive Person of the Year' award during the launch of the 'Progressive Yearbook.' Article by El Plural

Teresa Ribera, premio ‘Progressive person of the year’ por su labor en política internacional

by Europa Press 26/01/2024
Teresa Ribera has been recognized by FEPS with the 'Progressive Person of the Year' award during the launch of the 'Progressive Yearbook.' Article by Europa Press