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EU Weighs Softer Rollout of New Carbon Market for Transport and Heating

Rising German fuel surcharges in 2026 coincide with EU uncertainty over the ETS2 start.

Overview

  • The European Commission is reportedly exploring changes to ETS2, including a lower entry price, a later launch date such as 2028 or 2030, or measures to cap or damp prices, according to CDU MEP Peter Liese as cited in media reports.
  • ETS2 is planned to begin in 2027 and would apply CO2 costs to petrol, diesel, gas and heating oil, shifting certificate costs to consumers through higher pump and heating bills.
  • Official EU guidance has cited about €45 per tonne as an initial price, while other projections suggest €70–80 at the start and potentially above €100 by 2030, highlighting wide price uncertainty.
  • Germany’s national CO2 price, now about €55 per tonne, is set to move to auctions in 2026 within a corridor of €55–65, which experts say would add roughly 17–19 cents per liter to petrol and diesel before VAT effects and oil price swings.
  • Advisers note an EU stabilization mechanism through 2030 and a fund targeting energy poverty, yet warn that fossil heating is likely to grow costlier over time and urge households to factor rising CO2 costs into heating choices.