EU’s ETS-2 Climate Tax: A Costly Green Nightmare Hits in 2027

By P Gosselin

Beginning 2027, EU citizens will see their everyday lives getting much more expensive and painful… thanks to an EU-wide climate tax: ETS-2.

Image generated by Grok

Hans Labohm: “It is frightening that we are subjecting our economy to this madness.”

“Fuel prices and energy bills will rise, while our freedom of choice will be increasingly restricted,” reports German TKP blog here.  All because European citizens will be paying additional European climate taxes soon.

And this is just the beginning says former MEP Rob Roos: ‘Now it’s about houses and cars. Later, this tax will be extended to foodstuffs such as dairy products and meat, clothing and flying. The CO2 budget could be the next step.”

Going green in Europe means going expensive – and unfree. The EU’s new climate tax, ETS-2, set to begin in 2027, will expand the existing ETS-1 system, which requires heavy industry and energy producers to buy CO2 certificates. Next, fuel and energy suppliers will have to purchase certificates for their customers’ emissions. The result? Higher prices for driving, heating, and electricity!

Companies will simply pass on the cost of CO2 certificates to consumers, making everything much more expensive and citizens poorer.

The new ETS-2 system was created as part of the 2023 revisions of the ETS Directive, and the amending directive creating the new scheme came into force on June 8, 2023. Monitoring and reporting of emissions began in 2024, with the first emissions reports due by April 30, 2025.

Lots of pain, no impact on global climate

In 2023, the European Union’s share of global greenhouse gas emissions fell to just 6.0% and so limiting CO2 further will have barely a negligible climate impact overall climate globally. The real impact will be felt by EU citizens, and it’s not going to be painful.

Intensifying climate madness

Economist and journalist Hans Labohm calls the European emissions trading system an “economic instrument of torture” that will suck the life out of Europe’s society. ‘It is frightening that we are subjecting our economy to this madness,’ he says.

Labohm warns of rising energy prices, inflation and a mass migration of companies from Europe.

“Many households have to cut back on food, care or housing because they can’t pay their energy bills,’ Labohm adds.

Read full article here (German). 

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43 Comments
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May 27, 2025 10:49 pm

Incredible stupidity from the European Commission. Just what the Continent needs at a time it is in long-term economic and social decline.

Idle Eric
Reply to  Graemethecat
May 28, 2025 5:05 am

It’s what happens when you transfer power to unelected officials who are insulated from the consequences of their actions.

Kevin Kilty
Reply to  Idle Eric
May 28, 2025 6:14 am

Indeed. Why people overlook the power of accountability to improve behavior and sharpen thinking is beyond my comprehension.

MarkW
Reply to  Kevin Kilty
May 28, 2025 11:08 am

Socialists believe that experts should run everything. They shouldn’t have to worry about what the ignorant masses thing.
Of course socialists also consider themselves to be the experts. On everything.

Jon-Anders Grannes
Reply to  MarkW
May 28, 2025 11:58 pm

Globalists destroying the Western World economically and culturally so we at the endgame will accept UN Global Government/ International Socialism? Lenin and Stalin tryied the same so what can go wrong?

mikewaite
Reply to  MarkW
May 29, 2025 5:21 am

Douglas Jay , post war Labour minister , speaking in ’37 or ’38: “the man in Whitehall really does know best “

magesox
May 27, 2025 10:50 pm

…. and this is the scheme that 2TierKier has – without any reason whatsoever other than to suck up to the EU – has just signed up the UK to join. This decision is as insane as the scheme itself.

Denis
Reply to  magesox
May 28, 2025 7:35 am

Not quite as insane as his devotion to net zero for a country that accounts for less than 1% of world CO2 emissions. The only thing UK net zero can attain is impoverishment of Britons.

Leon de Boer
May 27, 2025 11:02 pm

There is a funnier part to this here are the background to AI power use predictions going forward

https://www.technologyreview.com/2025/05/20/1116327/ai-energy-usage-climate-footprint-big-tech/

There are a number of studies around even from the Guardian on the power AI is going to need.

So does this mean no AI for Europe or are they going to tax it effectively forcing it out of Europe. I guess option two is force the plebs to pay increased Tax to cover the AI footprint in Europe 🙂

No ChatGPT or Grok version 10 for you guys in Europe!!!!!

Reply to  Leon de Boer
May 28, 2025 12:22 am

No ChatGPT or Grok version 10 for you guys in Europe!!!!!

Meh.

sherro01
Reply to  quelgeek
May 28, 2025 3:07 am

Has anyone tried to unsubscribe from ChatGPT?
If it worked, can you please advise how you did it?
Geoff S

Reply to  sherro01
May 28, 2025 4:27 am

“I can’t do that, Dave.”

1saveenergy
Reply to  Leon de Boer
May 28, 2025 2:53 am

“No ChatGPT or Grok version 10 for you guys in Europe!!!!!”

Sounds good to me.

Scarecrow Repair
May 27, 2025 11:07 pm

Lots of “higher”, “more expensive”, and so on. How about some actual figures? 1%, 10%?

observa
Reply to  Scarecrow Repair
May 28, 2025 4:13 am

Don’t worry it will be computer modelled down for mainstream media reporting and you will be happy.

May 28, 2025 12:37 am

“The real impact will be felt by EU citizens, and it’s not going to be painful”.

TYPO: it should either be ‘ it’s going to be painful’ or ‘ it’s not going to be painless’.

May 28, 2025 12:43 am

ETS 2 will be a real tipping point. A tipping point for politicians. The population angry about the massive tax increases will sweep away in elections any politician who sticks to ETS 2.

In Germany and Austria the Green Party was part of the last government. They implemented many bullet points of their agenda: Degrowth, new CO2 taxes, ruining of industrial base. The result is obvious. The Austrian libertarian think tank “Agenda Austria” calculated the real GDP growth in the last 5 years. Germany is in the loser group, Austria is dead last, the chart has the self-telling name: “5 lost years”

In the recent nationwide elections (AUT: Sept24, GER Feb25) the Greens suffered losses and got kicked out of the governements. But their implemented agenda remains, for now. Current governments try to plug the recession created holes in the budget with increasing taxes, pushing Austrias tax rate to a record breaking 45.6% making live increasingly unaffordable. Putting ETS 2 on top, will be simply unbearable and politicians confronted with devastating polls/elections will start to row back. A tipping point.

20240517-aa-gdw-myecy-fuenf-verlorene-jahre
Reply to  Gerald
May 28, 2025 3:39 am

Only problem: The EU politicians are not elected, and therefore can’t be disposed of by voting. Aka why Europeans should be exiting “the (cell) block” as fast as they can run.

Reply to  AGW is Not Science
May 28, 2025 5:40 am

The EU commission is not elected, but it doesn’t matter. Merz and Macron have just demonstrated that the real power is still in the hands of the state leaders and Germany and France are dominating the EU.
Merz and Macron agreed on cancelling the crazy Supply Chain Regulation and the EU commission will follow.

Leon de Boer
May 28, 2025 1:06 am

Story Tip: Australian Federal government’s decision to sign off on an extension of Australia’s largest oil and gas project until 2070

Climate advocates devastated after Woodside North West Shelf project approved until 2070

So Albo obviously worked out they need to pay some of the Bills they are racking up.

So we are are Net Zero in 2050 but still burning gas until 2070 only a politician/snake oil salesman could explain that one

Sparta Nova 4
Reply to  observa
May 28, 2025 7:48 am

What is climate pollution?
How does one pollute a statistical construct?

Sparta Nova 4
Reply to  Leon de Boer
May 28, 2025 7:44 am

Since the 18 year old thinks renewables are the answer, how about blanketing the petroglyphs with solar panels?

May 28, 2025 2:21 am

“the European Union’s share of global greenhouse gas emissions fell to just 6.0%”

Wow, most interesting statistic of the day.

observa
Reply to  Joseph Zorzin
May 28, 2025 5:48 am

Offsets meboy. Don’t forget all those feelgood tradeable thin air derivatives and Chinese coal fired imports with the thumb on the scale.

Bruce Cobb
May 28, 2025 2:26 am

Well, there’s always cake.

1saveenergy
Reply to  Bruce Cobb
May 28, 2025 2:55 am

Where ???

Bruce Cobb
Reply to  1saveenergy
May 28, 2025 3:49 am

Silence, peasant!

Reply to  Bruce Cobb
May 28, 2025 9:05 am

The cake is a lie.

(for those who get it)

Bruce Cobb
Reply to  Tony_G
May 28, 2025 1:10 pm

Brioche, cake – potato potahto.

May 28, 2025 3:35 am

The real impact will be felt by EU citizens, and it’s not going to be painful.

EDIT: The real impact will be felt by EU citizens, and it’s going to be EXTREMELY painful.

Sparta Nova 4
Reply to  AGW is Not Science
May 28, 2025 7:48 am

or…. it’s not going to be painless.

Robertvd
May 28, 2025 4:04 am

“In 2023, the European Union’s share of global greenhouse gas emissions fell to just 6.0% and so limiting CO2 further will have barely a negligible climate impact overall climate globally.”

And what is the relation between CO2 and Climate other than a warmer ocean will outgas more CO2?

Sparta Nova 4
Reply to  Robertvd
May 29, 2025 7:29 am

Funny thing about the CO2 in the ocean…. When they extract CO2 from the air for “storage” they change the atmospheric partial pressure of CO2 and the ocean responds by increased emissions. Equilibrium is never achieved, but the process does respond. The point? Every gram of CO2 pulled from the air by these capture systems is replaced by the massive amounts retained in the ocean.

Carbon capture cannot achieve a long term reduction in CO2 ppm in the atmosphere.

Sparta Nova 4
May 28, 2025 7:36 am

If they model their lifestyles after the tsunami of immigrants, they will be able to cope and live the dream:

“You will have nothing and you will be happy”
— WEF

May 28, 2025 9:38 am

I’ve always wanted to see the great cities of Europe, but there are many places in the US I haven’t visited, such as Alaska, New Orleans or the Florida Keys. Truth be told, I enjoy nature more than cities. I won’t die regretting never having visited Paris, Rome, or Venice.

Paul McLellaln
May 28, 2025 11:32 am

“The real impact will be felt by EU citizens, and it’s not going to be painful.”
I’m assuming you mean it IS going to be painful.

May 28, 2025 3:47 pm

Because giving government bureaucrats more of your money always fixes things.

1000009623
May 28, 2025 6:00 pm

The irony is that CO2 does not now, never has and never will have a significant effect on climate. http://globalclimatedrivers2.blogspot.com

H5-sine-1yr-thru2023
Bob
May 28, 2025 7:41 pm

Get rid of the EU, it is a worthless organization. It is nothing more than one more layer of worthless government on top of the government you already had. Get rid of it. Giving more money to government never solved a thing. You might as well burn your money at least that way your money couldn’t be used against you. The EU sucks.

Robertvd
Reply to  Bob
May 29, 2025 4:11 am

It’s not the people running the Eu but the banking system. Europe is broke and only printing keeps it from imploding.

Sparta Nova 4
Reply to  Bob
May 29, 2025 7:32 am

EU has forgotten its mission and entered into areas that were not part of the intent of the charter.
EU was supposed to standardize currency, make intra-country trade more profitable, and invoke certain basic rights as standard across the member states.

If EU does not get back to its “roots” then it should disband due the harm it is causing.

One could make similar comments and comparisons to the US Federal Government.

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