Bertelsmann Stiftung (ed.)

Thomas Schwab (Bertelsmann Stiftung), Sara Hagemann (Bertelsmann Stiftung), Johannes Többen (Forschungszentrum Jülich), Imke Rhoden (Forschungszentrum Jülich), Sandra Venghaus (Forschungszentrum Jülich), Jochen Linßen (Forschungszentrum Jülich)

Heating Up Inequality?

Socio-spatial impacts of ETS2 on European housing and cohesion

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Format Type: PDF
Date of publication: 22/01/2026
DOI: 10.11586/2025112
Edition: 1. edition
Volume/Format: 80 pages, PDF

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Free of charge

Description

ETS2 will introduce uniform EU-wide carbon pricing for heating, affecting about half of all households across the Union. Using a synthetic EU population of 188 million households, this study shows that most can absorb the additional costs, but a significant minority faces high burdens–especially in East-ern and Southern Europe. ETS2 revenues can cushion these impacts but are insufficient to fund large-scale heating system replacements. Targeted support and complementary investment policies are essential for a fair and effective transition.

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