Effective and socially acceptable design of CO2 pricing in the building and transport sectors

Ambitious CO2 pricing via emissions trading is a key lever for achieving the statutory climate targets in the building and transport sectors. This makes climate protection measures economical, ensures target achievement through a binding upper limit on emissions and helps to keep the economic costs of climate protection low. However, it must be ensured that no social hardship arises. This study by the German Environment Agency (UBA) shows how this is possible. In essence, the UBA proposes redistributing the income from national emissions trading to the citizens via a climate bonus and supplementary support programs for vulnerable households.