As the European Union prepares to introduce a new carbon tax, known as ETS2, concerns are mounting over the potential impact on low- and middle-income households. The tax, set to take effect in 2027, will impose a carbon price on diesel, petrol, and heating fuels, raising fears that it could disproportionately affect those least able to afford it. However, a new study by Transport & Environment (T&E) suggests that with careful management, the ETS2 could also present a €300 billion opportunity to support a just transition away from fossil fuels.