BERLIN: An EU-wide carbon price on emissions from buildings and transport, set to take effect in 2028, is expected to affect household heating costs unevenly across the bloc, with sharper increases forecast in central and eastern Europe, according to an analysis released on Thursday.
The study by the Bertelsmann Foundation said greenhouse gas emissions from heating and road transport will be covered under a single EU carbon market aimed at encouraging a shift away from fossil fuels. Around 103 million households across the European Union are expected to be affected.
The analysis assumes a carbon price of €60 ($70) per tonne of carbon dioxide in 2028.
In Germany and other western and northern EU countries that already have carbon pricing mechanisms in place, average household heating costs would rise by about €17 per year compared with 2025, the report found.
In countries such as Portugal, Ireland, Denmark and Sweden, heating costs could even decline, as existing carbon prices there already exceed €60 per tonne, said economist and study author Sara Hagemann.
By contrast, heating costs are expected to rise significantly in parts of central and eastern Europe, where fossil fuels such as gas, oil and coal remain widely used and carbon pricing for heating and fuel has yet to be introduced. In those countries, a €60 carbon price could increase annual household heating costs by between €100 and €400 on average, the analysis said.
—dpa
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