non-ETS emissions fines and why you should be aware of them

non-ETS emissions fines and why you should be aware of them

What has EU non-ETS fines in 2021 on all EU Governments got to do with Electric Heating & Electric cars ? – Read on….

From Dec 31st, 2021, the European Union moves into a new territory of emissions reductions with the implementation of non-ETS target fines.

So, what is non-ETS ?

Simply, it is about emissions from fossil fuel usage in Buildings, Transport & Agriculture. It is a fining mechanism which will be applied to EU Governments from Dec 31st, 2021.

Each EU country has agreed targets.

Here is the leader board of each EU country, you can see only 1 country is meeting EU targets so far, and there are 2020, 2030, 2040 and 2050 targets to be met long term.

leader board for non-ETS targets

When it comes to meeting the Paris agreement for 2050, you can see where everyone stands and everyone has a long way to go, but some countries jump out as being in serious trouble such as Bulgaria (10/100), Ireland (13/100), Slovenia (17/100), Austria (17/100), Greece (20/100), Denmark (20/100), Belgium (21/100), Finland (22/100) and Hungary (22/100).

Even Sweden at No 1. in EU targets currently is only 67/100 and Germany is 54/100 when looking at compatibility with the Paris Agreement.

SO HOW CAN THIS IMPACT THE ORDINARY EU CITIZEN…..

Simple, it means carbon tax….from 2021.

Each EU country has various ways of implementing it but we have already seen a model being used on cars where road tax or annual tax is directly linked to CO2 emissions of the vehicle, and this is governed by EU Directive. The more emissions, the more annual vehicle tax you pay.

Now apply this to houses. In Ireland’s Citizen’s Assembly in Nov 2017, John Fitzgerald from the ESRI (Economic and Social Research Institute), the Government’s think tank was advocating an annual carbon tax of €70 per tonne of CO2 rising to €160 tonne by 2030. This would mean a typical annual tax of €900 to €1000 right now on most typical houses in Ireland. This would clearly be a major shock to the system and the Government has no choice but to act as fines are nearly here.

2020 non-ETS targets

This is why Governments are desperately trying to move everybody to electric heating and electric cars as electricity is already carbon taxed under the ETS scheme, and if EU Governments could move 100% of their citizens to electricity, the non-ETS fines would be zero. (It varies  by EU country but approx 10% of your electricity bill is carbon tax, it is declared to you in some countries and hidden in others)

Most EU Governments have been offering grants and incentives since 2006 to improve the Energy Ratings of Buildings, that is over 12 years of “carrot”, but the reality is, the stick is coming as time is nearly up.

Next time, you look at electric cars and electric heating and wonder about all the issues and costs, you should understand why you are being forced this direction.

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