What is EU ETS 2 ?

EU ETS 2 represents an extension of the EU Emissions Trading System, designed to include new economic sectors and to intensify measures for reducing greenhouse gas emissions.

EU ETS 2 Sectors

Residential and Commercial Buildings

The expansion of EU ETS 2 applies to residential and commercial buildings, introducing strict energy efficiency standards and measures to reduce emissions from heating and cooling. This sector includes the implementation of energy-efficient technologies, building renovations, and upgrades to reduce energy consumption and CO2 emissions. Promoting green buildings and energy certificates is essential for achieving sustainability goals.

Road Transport

EU ETS 2 includes the road transport sector, aiming to reduce CO2 emissions by regulating commercial and private vehicles. This involves introducing strict standards for new vehicles, promoting electric and hybrid vehicles, and developing the necessary charging infrastructure. Additionally, the transition to low-emission transport forms is encouraged, and incentives are implemented for the purchase of less polluting vehicles.

Other Fuels

EU ETS 2 regulates the use of other fossil and alternative fuels to reduce greenhouse gas emissions. This sector includes measures to decrease emissions from fuel use in various industries, as well as promoting the use of renewable energy sources. The aim is to encourage the transition to low-carbon fuels and implement carbon capture and storage (CCS) technologies.

Legislation and Regulations

EU ETS 2 operates on the same system as EU ETS (cap-and-trade) and is supported by a legislative framework to ensure efficient implementation and operation:

Regulation (EU) 2021/1056: Refers to the extension of the EU ETS to include the road transport and buildings sectors, offering details on specific implementation and regulations.
Directive (EU) 2021/1119: Known as the “European Climate Law,” this sets the goal of achieving climate neutrality in the EU by 2050.

The implementation of EU ETS 2

EU ETS 2 is set to come into effect starting in 2026. For the period 2024-2026, you need to report your emissions. It is essential to prepare in advance for this expansion of the emissions trading system.

Carbon Expert can assist you in adequately preparing by offering consultancy and customized solutions to ensure compliance with the new regulations and standards imposed by EU ETS 2.

The transition period allows for the development of the necessary infrastructure and the implementation of measures to facilitate a smooth adaptation to the new requirements.