Starting in 2027, the European Union’s new Emissions Trading System (ETS-2) will extend to cover the transport and buildings sectors. Carbon pricing is expected to increase energy costs for households and businesses. In response, the EU is creating a Social Climate Fund, and Member States were expected to submit their Social Climate Plans to the European Commission by 30 June. Most countries, including Bulgaria, have indicated they need more time, with Bulgaria planning to submit its plan by the end of 2025. The draft of Bulgaria’s Social Climate Plan was published for public consultation on 20 June.
The Bulgarian Hydrogen, Fuel Cell and Energy Storage Association (BGH2A) is preparing proposals to include renewable hydrogen as a strategic decarbonization tool in Bulgaria’s national plan.
Hydrogen Mobility – Part of the Solution
Environmental and social organizations across Europe emphasize the need for targeted investments in electromobility, hydrogen mobility, and sustainable infrastructure. According to BGH2A, hydrogen technologies offer a key opportunity for decarbonizing transport and industry, provide flexibility and storage for renewable energy, and are an indispensable part of the transition to a climate-neutral economy.
Social Protection and the Need for More Funding
The Social Climate Fund is intended to support the most affected social groups, but many organizations argue that the planned €65 billion is insufficient. In Germany, specific support mechanisms are being discussed, such as subsidies for the renovation of social housing. Bulgaria is also expected to present its own social protection measures by the end of the year.
ETS-2 Requires Policy and Regulatory Measures
Achieving ETS-2’s goals will require accompanying policy and regulatory action. These include investments in public infrastructure, legal requirements for CO₂ reduction, and social mitigation measures. Targeted investment in low-cost transport, electromobility and hydrogen mobility infrastructure will be key to a successful transition.
Hydrogen – A Strategic Opportunity for Bulgaria
Hydrogen mobility and industry can play a central role in reducing emissions from transport and heating. Developing hydrogen infrastructure, supported by EU social and investment funding, represents not only an environmental but also an economically sound step – especially in light of the rising carbon costs under ETS-2.
