The German national CO2 price, the ETS 2 and the Social Climate Fund

The second European Emissions Trading Scheme (ETS-2) introduces a standardised EU-wide CO2 price in the buildings, transport and small industrial plants sectors for the first time. However, key questions regarding the exact design of ETS-2 are still unanswered in this context. On the one hand, there is a need to clarify the specific implementation of ETS-2 in Germany, as national emissions trading already exists in the relevant sectors. Another aspect concerns the utilisation of the revenue from ETS-2 in order to reduce the financial burden on citizens in a targeted and effective manner. The aim of the study is to identify and optimally utilise the room for manoeuvre within the European regulatory framework.