Monthly National Update: September
In September, ETS2, fuel prices and the next EU budget remained important topics across Central and Eastern Europe. Several governments introduced tax reductions and subsidies to ease high fuel prices, while civil society organisations continued to question whether these efforts provide the right kind of support, particularly for households affected by energy and transport poverty.
At the EU level, progress on ETS2 and the Social Climate Plans differs by country- the European Commission has approved the plans of Latvia, Lithuania, Malta, Sweden and Greece, while several others are still under assessment. The upcoming ETS review is likely to affect discussions on the future of ETS2 and the support available to vulnerable households.
In Hungary, the government introduced a monthly subsidy of around €13 for private owners of diesel cars with an engine power below 110 kW, guaranteed for four months, and agricultural users are exempt from diesel excise duty until the end of the year. The group also plans amendments to building regulations, including stricter penalties for environmental protection violations.
Clean Air Action Group continued to focus on public spending and climate policy, including assessing the Recovery and Resilience Facility’s contribution to EU climate targets, preparing proposals for a more environmentally and socially sustainable EU budget, and writing to the Minister for Energy about diesel subsidies for freight transport. The organisation also addressed company car taxation and continued working on proposals for future EU funding programmes. Further activities include contacting Hungarian decision-makers and Members of the European Parliament, submitting additional proposals, and continuing its media work.
In Latvia, Green Liberty continued preparing the fourth thematic report and the final ClimateFair Monitor conference. With the Social Climate Plan approved, attention is now turning to its implementation. The organisation is also preparing a national event and following discussions on the next EU funding period.
In Bulgaria, the government announced a package worth more than €300 million to help households and businesses deal with high fuel prices. The measures include temporary excise duty exemptions for propane and butane used as motor fuel, a one-off €50 payment for low-income people, support for agricultural producers, and assistance for public, school, medical, and heavy-duty transport.
The Economic Policy Institute continued work on the fourth thematic report and the internal review of the Bulgaria co-benefits report. It also participated in an EUKI Academy web seminar on achieving a just and effective ETS2. Its next priorities include following the Social Climate Plan, Bulgaria’s position on ETS2 and opportunities for public participation in discussions on the 2028-2034 EU budget.
In Poland, little new progress emerged on ETS2 or the Social Climate Plan. The Institute for Sustainable Development followed developments and took part in civil society advocacy, including a letter coordinated by CAN Europe ahead of the Environment Council meeting. Work also continued on alternatives to using public funds to reduce fuel prices. Further activities will focus on the ETS review and how revenue from energy-related taxes could be used.
In Slovenia, the government continued measures to reduce the cost of fossil fuel consumption, while the future of support for electric vehicles remained uncertain. Umanotera continued to oppose untargeted fossil fuel subsidies and called for more funding for energy-efficiency improvements. Its upcoming work includes a report on the distributional effects of climate and energy taxation, and continued engagement with decision-makers on ETS1 and ETS2.
In Romania, the ongoing political crisis continued to limit climate policy progress. Fuel tax reductions had been introduced, but uncertainty remained over future policy decisions. Reports that ETS2 could be postponed until 2031 added to these concerns. Civil society organisations continued discussing possible next steps, although it remains difficult to know which decision-makers to approach while the political situation is unresolved.
At EU level, the ETS review is becoming a central focus for collective advocacy. Member States have different views on the future of ETS2, and environmental organisations are following the discussions closely. Project partners are working on keeping social considerations on the agenda, particularly the effects of climate policy on vulnerable households.
Overall, September brought further discussion about how governments should respond to high fuel prices while meeting their climate commitments. Although subsidies and tax reductions can provide short-term relief, questions remain about their longer-term effects and whether support reaches those who need it most. In the coming months, ClimateFair Monitor partners will continue to follow the ETS review, monitor the implementation of Social Climate Plans, and engage in discussions on the next EU budget. An important part of this work will be advocating for public funding that supports vulnerable households while also helping to improve energy efficiency and move towards cleaner heating and transport.
Photo: Kristaps Ungurs/Unsplash
