Slovak progressives pushing for ‘climate cheque’ to compensate for green transition

According to the proposal, people would, potentially monthly, get money to compensate for the higher prices caused by the green transition. [Shuterstock/Jaroslav Moravcik]

The liberal Progressive Slovakia party has proposed a new system of compensation to work towards the transition to a carbon-neutral economy and combat rising energy prices.

The ‘climate cheque’ would give a certain amount of revenue from the European emission trading scheme (EU ETS) back to the people. Another portion would be used for measures helping to achieve European climate goals.

The author of the proposal, MEP Martin Hojsík, says the proposal is in line with principles of the just transition and new climate targets of the European Commission.

According to the proposal, people would potentially get monthly each month to compensate for higher prices caused by the green transition. Hojsík explained that changes proposed by the Commission in the EU ETS, including the building and transport sectors, will almost certainly mean higher prices as producers of steel or cement will reflect the higher expenditures in prices. Hojsík, therefore, proposed compensation of €127 to every Slovak citizen, which is 40% of all Slovak revenues from EU ETS.

Furthermore, Hojsík proposed 10% of revenues go to the Environmental Fund of Slovak republic, 20% to the energy efficiency programmes, 15% to renewable energy programmes, 10% to the Fund of green innovations, and 5% for compensation of the industry. As of now, all the revenues from EU ETS go to the Environmental fund.

Progressive Slovakia wants to propose the legislation next spring.

“The proposed system would create a signal for the consumers on the market about the effects of greenhouse gas emissions, motivate them to switch to cleaner solutions and at the same time increase the purchasing power of households. To a lesser extent, it would also help households to invest in less costly low carbon alternatives. If this is combined with other measures to improve the availability of support for energy efficiency and renewables, we can consider it a motivation for investing in cleaner solutions,” Hojsík wrote.

(Michal Hudec | EURACTIV.sk)

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