EMISSIONS: Croatia Launches €1.6BN Social Climate Plan To Tackle EU ETS2

Croatia has presented a €1.6bn Social Plan for Climate Policy to help vulnerable groups from the impacts of EU ETS 2 that is set to cover emissions from buildings and road transport starting in 2027.

• BNEF forecasted that EU ETS2 prices could surge to €149/ton CO2e ($156/t) by 2030. The cost will initially fall on fuel suppliers and ultimately filter down to end-users, with it predicts road transport bills could increase 22-27%, while home heating expenses could rise 31-41% .
• Minister Marija Vučković emphasized that the plan will focus on low-income households, micro-enterprises, and small business resilience, noting that it aims to “secure an efficient and just green transition” without leaving behind the most vulnerable.
• Proposed measures include retrofitting the least efficient homes, expanding public transport in underserved regions, incentivizing zero-emission vehicle purchases, and offering direct financial support.
• The plan will be funded by the Social Climate Fund, part of the EU’s Fit-for-55 climate package, through revenues generated from ETS 2 auctions.
• The plan is currently under public consultation and will be submitted to the EU Commission for adoption once finalized.