ETS-2 Explained

The EU Emissions Trading System (ETS) is evolving to accelerate progress toward the EU’s climate goals of a 55% emissions reduction by 2030 and net zero by 2050.

ETS-2, set to launch in 2027, represents a significant expansion by targeting CO₂ emissions from fuel combustion in transport, as well as heating and cooling for buildings. 

This means that indirect, Scope 3 emissions from the fossil fuel industry will also be addressed. With the potential to extend coverage to additional sectors through national opt-in policies, ETS-2 will regulate a broader share of EU emissions, driving the transition towards clean energy solutions and technologies.

This upstream system places the responsibility for CO₂ allowances on fuel suppliers, creating incentives to invest in cleaner fuels, electrification, and decarbonisation strategies. However, ETS-2 introduces unique challenges, including its implications for Scope 3 emissions, the likelihood of high CO₂ prices, cost pass-through to consumers, and higher marginal CO₂ abatement costs compared to ETS-1.

About this webinar

This webinar will provide clarity on ETS-2 and its role in shaping the future of emissions reduction in the EU. Participants will gain actionable insights to:

• Navigate the ETS-2 framework and its reporting requirements 
• Strategically align their business operations to comply and thrive under the new system
• Identify opportunities for investment in clean energy and carbon reduction technologies 
• Understand the impact of ETS-2 on fuel supply chains and end-user costs