ETS2 is a new carbon emissions pricing system. For many people, this primarily means higher living costs, which is why the topic is coming up more and more often in discussions about heating bills and fuel prices.
Key takeaways from this article:
- ETS2 is a new EU system related to CO2 emissions that will cover, among other things, building heating and road transport.
- Although many people refer to it as a “heating tax,” the charges will formally be borne by fuel suppliers, and the costs may be passed on to end users.
- Higher prices are likely to affect primarily coal, natural gas, heating oil, and automotive fuels.
- Older, poorly insulated buildings that rely on fossil fuels will be most vulnerable to rising costs.
- ETS2 is part of the EU’s climate policy and is set to apply in all EU member states.
- The system is expected to take effect in 2027 or 2028.
- Not all heating sources will be subject to additional costs —pellet fuel, biomass, heat pumps, and solar energy, among others, are expected to remain exempt from the ETS2.
What is the new heating tax?
Although many people use the term “tax,” ETS2 will not be a traditional tax levied directly on homeowners. Under this mechanism, companies that bring fuels to market will be required to purchase CO2 emission allowances.
The costs of these allowances will likely be passed on to end consumers through higher prices for:
coal, natural gas, heating oil, gasoline, and diesel fuel.
This is precisely why this solution is increasingly referred to as a heating tax or a CO2 emissions tax.
Who pays the CO2 emission fees?
Formally, ordinary citizens will not be billed under this system. The obligation to purchase emission allowances will fall on fuel suppliers, importers, and energy producers.
So the answer to this question is not straightforward. Technically, the participants in the system will be companies operating in the fuel market, but the costs will most likely be passed on later in the prices of products and services.
For the average household, this means no new declarations or additional paperwork, but at the same time, the possibility of higher expenses related to heating the home and filling up the car.
How might the new heating tax affect utility bills?
The most noticeable changes may affect households that use fossil fuels. The higher the consumption of coal or gas and the lower the building’s energy efficiency, the higher the potential costs.
The following may be particularly vulnerable:
- old, poorly insulated homes,
- coal-heated buildings,
- households that consume large amounts of gas,
- people living in regions with high heating demand.
According to various analyses, fuel and heating prices may gradually rise as CO2 emission allowance prices increase.
If you’re planning to modernize your boiler room or install a new heating system, it’s worth choosing solutions tailored to today’s energy requirements.
A well-chosen heating system today isn’t just about comfort—it’s also a way to better prepare your home for changes related to ETS2 and rising energy costs.
When will ETS2 take effect?
Two dates are being mentioned in public discourse: 2027 and 2028. Initially, the system was supposed to launch earlier, but some EU member states called for a postponement due to the economic situation and energy prices.
However, this does not change the fact that the regulations are part of the EU’s climate policy and are to be implemented in all member states.
Important: ETS2 is part of the “Fit for 55” package, which aims to reduce greenhouse gas emissions in Europe.
Will every heating source be subject to the ETS2 tax?
Not all heating systems are expected to incur additional costs. ETS2 will primarily apply to fossil fuels, while some solutions based on renewable energy sources will remain outside the system.
The following, among others, are expected to be exempt:
- pellets,
- wood,
- biomass,
- solar energy,
- biogas,
- heat pumps.
This is precisely why many people are beginning to take an interest in modernizing their heating systems and improving the energy efficiency of their buildings.
Although the details of the system still raise many questions, one thing is certain—the cost of CO2 emissions will have an increasingly significant impact on households’ daily expenses in the coming years.
Check out Stalmark’s offerings and choose modern heating systems that combine high efficiency, comfort, and greater control over heating costs.
FAQ
Will ETS2 also affect the prices of goods and services?
Yes, because higher fuel and transportation costs can indirectly affect the prices of many products and services related to logistics, heating, and manufacturing.
Can home retrofitting mitigate the effects of ETS2?
Yes. Insulating the building, replacing the heating system, and reducing energy consumption can effectively lower heating costs despite rising fuel prices.
Is it worth planning to replace your heating system now?
Many people view the current changes as a signal to plan for modernization sooner rather than later. This makes it easier to prepare your home for future energy costs and the requirements of the EU’s climate policy.
