EU member states hope to adjust the ETS II to gain public support.
The EU's ability to sustain the new carbon market in the road transport and construction sectors politically depends on balancing affordability with public acceptance. Models show that introducing more flexible measures in the second phase of the EU emissions trading system can alleviate the pressure of rising carbon prices, but it will also slow down the process of emission reduction. It is crucial to effectively use carbon trading revenue and complementary policies to ensure that the EU steadily progresses towards its climate goals, while also avoiding the generation of unbearable costs or exacerbating poverty caused by fuel.
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