Inspired by the success of the EU Emission Trading Scheme for the manufacturing and energy sectors, Fit-for-55 is a new legislative package proposed by the European Commission to reduce carbon emissions from fuel use in transport and buildings. The proposal, which needs to be approved by all Member States, has received mixed reactions from industry, NGOs and sector organisations. How will the scheme work, what will be the impact on consumers and is it the right instrument to reduce transport and building emissions?