Italy, Poland, and Czechia are advocating for a delay in the implementation of the EU's new carbon market for road transport and heating, known as ETS2. The system is currently scheduled to launch in 2028. Critics argue that the carbon levy could increase financial pressure on households already struggling with high energy costs.
The Social Climate Fund provides significant financial resources for the 2026–2032 period to support the transition. Poland is eligible for up to €11.4 billion, Italy for €7 billion, and Czechia for €1.6 billion. These funds are intended to help citizens adopt cleaner alternatives, such as electric vehicles and home energy efficiency upgrades.
Governments can access capital before ETS2 revenues materialize. The European Investment Bank has established a €3 billion frontloading facility for this purpose. Additionally, the Social Climate Fund utilizes early financing from auctions conducted under the existing ETS1 carbon market, which began in 2026.
Sweden serves as an example of proactive implementation. The country launched a €533 million Social Climate Plan, which includes subsidies for leasing or purchasing electric cars. By June, the program had received over 12,000 applications, with nearly half already approved for support.
