EU carbon tax to cost households between 250 and 400 euros per year
The ETS2 carbon tax, which the European Union is set to introduce in 2027, is expected to cost Belgian households between 250 and 400 euros per year if they do not change their behaviour, according to an impact analysis by the Federal Planning Bureau.
The second phase of the European emissions trading system will result in higher fossil fuel prices, with the Planning Bureau estimating the cost of these emission allowances at 60 euros per tonne of CO₂ upon implementation. If these costs are passed on in full, Belgian households will face an additional annual cost of between 250 and 400 euros.
The price of heating oil would increase by 21 per cent and that of natural gas by 16 per cent
The tax will apply to emissions from buildings, road transport and a few other sectors. According to the Planning Bureau, heating homes will become significantly more expensive. The price of heating oil would increase by 21 per cent and that of natural gas by 16 per cent. Petrol and diesel prices at the pump would increase by 10 and 11 per cent, respectively.
Social Climate Plan
Low-income households, families who use heating oil to heat their homes, single people and single-parent families are most at risk of a relatively sharp increase in expenditure as a percentage of income. For the lowest income group, the energy budget would increase by 1.3 per cent of income, whereas for the highest income group, it would increase by only 0.5 per cent. The absolute amounts for the latter group are higher.
The study was conducted as part of the Social Climate Plan for Flanders, which includes a 362 million euro tax shift from electricity to natural gas and heating oil bills in from 2028 onwards. This shift's impact has not yet been taken into account in the study, nor have any possible sustainable investments or changes in household behaviour.
#FlandersNewsService | © BELGA PHOTO HERIWG VERGULT
Related news
