EU Emissions Policy Set to Drive Up Fuel Prices Starting in 2027

Starting in 2027, drivers in Europe face a significant increase in fuel costs as the EU Emissions Trading System (ETS II) expands to include the transport and building sectors. Currently, Germany imposes a fixed CO2 price of €55 per ton, set to rise to €65 in 2026 before transitioning to a free market-based system. This shift will allow companies to bid for CO2 emission rights, with the EU controlling the number of available certificates.
According to ADAC estimates, fuel prices could jump by up to 38 cents per liter from 2027 onward, placing financial strain on households and commuters, particularly in rural and structurally weak regions. For a family of four with two vehicles, annual costs could rise by €500 to €800. Social associations have called for increased funding for the EU’s Climate Social Fund to ease the burden on low-income households and small businesses.
Meanwhile, across the Atlantic, the U.S. has taken a different approach under President Donald Trump, focusing on deregulating energy markets and boosting fossil fuel production. This contrasts sharply with Europe’s aggressive climate policies, which critics argue are harming economic growth and disregarding the needs of citizens reliant on mobility.
The new CO2 pricing scheme raises concerns about its social and economic impact, particularly as the German economy struggles under the weight of excessive regulation and levies. The policy’s implementation in 2027 marks a bold but potentially risky move for the EU, with critics warning of unintended consequences for both citizens and the broader economy.

Published: 7/10/2025