Is EU going to be cashless and conect your spending with CO2 allowance?

1. What the EU is actually implementing: stronger carbon markets, not consumer CO2 wallets

The EU ETS sets a cap and requires companies in power, industry, aviation and maritime sectors to hold an allowance for each tonne of CO2 emitted; those allowances are tradable and their price has risen in recent years as the cap tightens ^{[1] [3]}. Separately, CBAM will make importers account for embedded emissions in certain goods and will move to its full regime in 2026 with certificate purchases tied to the EU ETS auction price ^[2].

2. How allowances and CBAM certificates work in practice (companies, not individuals)

EU Allowances (EUAs) are issued to and surrendered by installations and operators; companies must surrender allowances equal to verified emissions on an annual timetable (for many sectors this surrendered amount is verified and due by specified dates) and some sectors are transitioning from free allocation to auctioning by 2026 ^{[4] [5] [6]}. CBAM requires importers to register with national authorities and to buy CBAM certificates as of the definitive regime; the certificate price will be calculated from the weekly average auction price of EU ETS allowances expressed in €/tCO2 ^[2].

3. Price signals and market context — carbon is becoming more expensive

Carbon permit prices have risen and fluctuate; recent data show EU carbon permits around €80/tonne in November 2025 and analysts forecast further increases as supply is tightened under Fit-for-55 reforms and the Market Stability Reserve reduces surplus allowances ^{[7] [8] [9]}. EU agencies monitor price volatility and have thresholds and mechanisms tied to auctioning rules and market stability ^[9].

4. Why people are asking about “cashless” and personal CO2 allowances

Policy attention on cuts to emissions, consumer-facing nudges and digitalisation of payments has given rise to speculation that governments might directly limit or price individual consumption. But the EU’s documented measures in these sources apply to companies, importers and sectors — not a universal, bank-linked personal CO2 budget ^{[1] [2]}. Available sources do not mention a legislative or regulatory EU program to make the euro cashless or to connect each citizen’s spending to personal CO2 allowances (not found in current reporting).

5. Possible confusion points and where misinformation can spread

Three facts can be conflated: (a) carbon pricing exists and is rising for covered sectors ^{[1] [7]}; (b) CBAM links imported goods to CO2 cost via certificates tied to EUA prices ^[2]; and (c) digital payments and CO2 labels for products are separate trends. Mixing these into a single claim — that the EU will force a cashless economy and attach a personal CO2 wallet to every payment — is not supported by the cited EU and market reporting ^{[2] [1]}.

6. What to watch next — policies that could change the picture

Near-term mandatory changes documented in the sources include CBAM’s definitive regime from 2026 and continued sector expansions of EU ETS coverage ^{[2] [1]}. Market developments such as allowance price moves and further legislative steps (e.g., more scope expansions or digital reporting systems) could create new debates about consumer-level measures, but the current sources show market and importer obligations rather than direct consumer cashless controls ^{[2] [1]}.

7. Bottom line for readers

The EU is intensifying carbon pricing for firms and imports — with EUA prices around €80/t and CBAM certificate purchases tied to those auction prices in the definitive regime from 2026 — but the available reporting does not show an EU plan to make the economy cashless or to bind everyday consumer spending to individual CO2 allowances ^{[7] [2] [1]}. If you see claims that the EU will force personal, account-level CO2 rationing, those claims are not documented in the sources provided here (not found in current reporting).