Zuhal Demir: “European climate policy must not lead to social deprivation”

The European Commission reached an agreement to expand the ETS, the Emissions Trading System. This will lead to additional costs for our families and entrepreneurs. Flemish Environment Minister Zuhal Demir is disappointed with the content of the agreement: “Flanders is opposed to the European rat race that systematically impoverishes single people and families. A climate policy without social deprivation. That must be the ambition.”

In the future, European citizens and businesses will have to pay more for the CO2 they emit. Negotiators of the European Member States and the European Parliament reached an agreement on that this morning. Specifically, this concerns reforming the Emissions Trading System (ETS). The federal ministers of the de Croo government were all in favour of the reform, but the Flemish Government was not. Through Flemish Minister Zuhal Demir, Flanders opposed Belgian support for the reform last year. As a result, through federal minister Khattabi, Belgium could never support the expansion of the ETS. However, a large majority was found, and the reform now seems unstoppable.

Incomprehensible

Zuhal Demir disapproves of the content of the agreement and calls it incomprehensible. “Unfortunately, Flanders is alone in putting the brakes on the European rat race to systematically impoverish single people and families. A climate policy without social deprivation. That must be the ambition.”

An additional EUR 460 per year

A study by the Flemish Energy and Climate Agency shows that the impact of the new ETS on an average Flemish household would lead to an increased energy bill of around EUR 460 per year for a carbon price of EUR 100 per tonne of CO2.  Moreover, the study shows that even a higher carbon price would only lead to a modest reduction in emissions in transport and buildings.

Income would not return to Flanders

In addition, according to the European Commission’s proposal, not all the income generated in Flanders with this system would flow back to Flanders through the Social Climate Fund. Over the period 2026-2030, Flanders would see some EUR 420 million channelled to other Member States through this system.

Flemish dissenting vote

Since November, however, a few things regarding the proposal have evolved and changed. For example, the introduction is postponed by a year, and a Member State can withdraw from the system, but only on the condition that a national carbon tax is introduced. The Flemish dissenting vote therefore remained the only possible option, according to Zuhal Demir.