Climate policy in crisis: New Economy Short Cut with Sven Giegold, Eric Lonergan, Isabella Wedl and Bernd Weber

Originally, carbon-intensive forms of driving and housing were supposed to become much expensive from 2026 onwards. That was the plan for the next stage of emissions trading in the EU. It is also in line with traditional climate theory, which states that behavioral change must come about through cost pressure. The catch: in reality, governments repeatedly shy away from doing just that – as is the case now, with the EU postponing the introduction of ETS2 once again. At the same time, doubts are growing about the once-praised ideal of climate policy via the market.  

The Forum has commissioned a study to outline what an alternative to this might look like. The principle: CO2 pricing should only be introduced once the conditions are right and people have climate-friendly alternatives, such as affordable electric cars and sufficient charging stations. Before that, positive incentives are needed. Only then does it make sense to drive up the prices for harmful behavior, write Eric Lonergan, Michael Grubb and Isabella Wedl in the paper. 

Could this also be a model for the EU—instead of just postponing the cost shock, as is currently the case? We will discuss this in our next New Economy Short Cut: 

Climate policy in crisis – will better timing help with CO2 pricing? 

With Sven Giegold, The Greens 
Eric Lonergan, Calibrate Partners London
Bernd Weber, Founder and Executive Director, EPICO
Isabella Wedl, Forum New Economy

on Thursday, 20 November 2025 at 13.30 CET– via Zoom. Register here.