Policy Brief n° 6 - Effective, Fair and Inclusive Climate Policies in Europe and in the Global South Challenges and way forward

Key message Ambitious European climate policies play an important role in tackling global warming, driving rapid emission reductions while setting international benchmarks that influence partners and multilateral cooperation. ETS 2 and CBAM mark a new phase in European climate governance, extending carbon pricing. Their success will depend on their ability to embrace social fairness and international equity. Without robust redistribution at home and solidarity abroad, these measures risk undermining the EU’s climate ambitions. The Social Climate Fund, if expanded in fundings and scope, and transparently managed, can provide both short-term support and long-term investment, helping vulnerable households cope with rising energy costs while participating in the low-carbon transition. CBAM can enhance fairness and legitimacy when implemented inclusively, through support for SMEs, and the recycling of revenues into climate programmes in low-income countries especially affected by negative effects of climate change.