EU carbon rules / Regulations / ETS2 (buildings/road transport/small industry)
Start postponed to 2028 (originally 2027); auctioning frontloaded in 2027
This regulation applies to:
ETS2 is the new Chapter IVa inserted by Dir 2023/959, covering the activity of ‘release for consumption’ of fuels in buildings, road transport and additional sectors; regulated entities must hold a greenhouse gas emissions permit from 2025-01-01 and monitor and report from 2025. Originally scheduled to start in 2027, it was postponed by Regulation (EU) 2026/667 to full operation in 2028 (with auctions in 2027).
The following provisions define its scope:
Article 30a — Scope (Chapter IVa, ETS2)
The provisions of this Chapter shall apply to emissions, greenhouse gas emissions permits, the issue and surrender of allowances, monitoring, reporting and verification in respect of the activity referred to in Annex III. This Chapter shall not apply to any emissions covered by Chapters II and III.
| Duty | Trigger | Evidence | Timing |
|---|---|---|---|
| Fuel suppliers obtain a permit and report annually Fuel distributors supplying energy to buildings, road transport and small industry must obtain a permit and report. | Placing taxable fuels on the market in a Member State | ETS2 permit, annual fuel and emissions report | Reporting from 2027 |
| Purchase and surrender ETS2 allowances Surrender ETS2 allowances according to fuel emissions. | Annual emissions from fuel sales | Allowance surrender records | Compliance from 2028 |
Article 3ga(1) — maritime scope (50 % / 100 %)
The allocation of allowances and the application of surrender requirements in respect of maritime transport activities shall apply in respect of fifty percent (50 %) of the emissions from ships performing voyages departing from a port of call under the jurisdiction of a Member State and arriving at a port of call outside the jurisdiction of a Member State, fifty percent (50 %) of the emissions from ships performing voyages departing from a port of call outside the jurisdiction of a Member State and arriving at a port of call under the jurisdiction of a Member State, one hundred percent (100 %) of emissions from ships performing voyages departing from a port of call under the jurisdiction of a Member State and arriving at a port of call under the jurisdiction of a Member State, and one hundred percent (100 %) of emissions from ships within a port of call under the jurisdiction of a Member State.
Article 3gb — phase-in of surrender obligations (40 % / 70 % / 100 %)
Shipping companies shall be liable to surrender allowances according to the following schedule: (a) 40 % of verified emissions reported for 2024 that would be subject to surrender requirements in accordance with Article 12; (b) 70 % of verified emissions reported for 2025 ...; (c) 100 % of verified emissions reported for 2026 and each year thereafter ...
Amended Article 9 — cap adjustment and linear reduction factor (4,3 % / 4,4 %)
In 2024, the Union-wide quantity of allowances shall be decreased by 90 million allowances. In 2026, the Union-wide quantity of allowances shall be decreased by 27 million allowances. In 2024, the Union-wide quantity of allowances shall be increased by 78,4 million allowances for maritime transport. The linear factor shall be 4,3 % from 2024 to 2027 and 4,4 % from 2028. ...