CEPR-EAERE Climate Policy 8: Fit for 55: Why do we need a coherent carbon pricing mechanism in Europe?
The European Union has agreed to pursue a very ambitious climate target aimed at reducing its global emissions by 55% between 1990 and 2030. The “Fit-For-55” package proposed by the EU Commission in July 2021 is aimed at translating this ambition into actual climate actions. Among these policies, there is the key issue of extending carbon pricing to the transportation and heating sectors. The EU Parliament is expected to vote on this issue in the coming month, with a high probability of this extension to be rejected, as recommended recently by its Environmental Committee.
On June 13, 2022 a roundtable discussed the reasons for and against this extension, together with possible alternative policies to attain the target. The panellists were Jos Marie R. Delbeke (STG and KU Leuven), Andrea Tilche (NTNU and MIMS) and Adrien Fabre (ETH Zürich), and it was moderated by Carlo Carraro (Università Ca' Foscari di Venezia and CEPR).