The Malta Sociological Association (MSA) notes the European Commission's initiative on financial compensation under the EU Emissions Trading System for buildings, road transport and additional sectors (ETS2), recognising its importance in supporting a fair and socially just transition to climate neutrality.
The MSA recommends that the design, implementation and evaluation of compensation measures explicitly incorporate Social Impact Assessment (SIA) alongside environmental and economic considerations. Carbon pricing may affect different social groups unevenly, particularly lower-income households, older persons, persons with disabilities, and communities with limited access to affordable and sustainable transport or energy alternatives.
The MSA also encourages a stronger social rights approach, recognising access to affordable energy, mobility and a healthy environment as essential components of social wellbeing and inclusion. Financial compensation should therefore prioritise those most affected by the transition while promoting long-term investments that reduce social vulnerabilities and improve resilience.
The MSA further recommends that future evaluations of ETS2 compensation measures assess their wider social impacts, including effects on inequality, energy poverty, transport accessibility, employment, and territorial cohesion. Embedding SIA within the implementation of ETS2 would strengthen evidence-informed policymaking and contribute to a transition that is not only environmentally effective but also socially equitable and inclusive across the European Union.
The Malta Sociological Association also emphasizes that the ETS2 should factor in the impacts on small-island (including small island states), insular and peripheral regions within the EU, and hence include mitigating and compensatory measures in relation to such impacts.
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