EU ETS 2

Launching in 2027, the ETS 2 will cover fuel combustion in buildings, road transport, and additional sectors, mainly small industries not included in the EU ETS 1.

Unlike ETS 1, where the regulated entity is the entity that emits the CO₂ into the atmosphere, ETS 2 is an upstream system that will oblige whoever distributes or trades the fuel. Under this regulation, fuel suppliers for road transport and buildings will be required to monitor their GHG emissions, and to surrender a bespoke emission allowance called EUA2.