ETS-2 Explained: Exploring the Next Chapter of EU Emissions Trading

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.

In this webinar, our experts provide a clear overview of ETS-2, including its design, timeline, and key differences from ETS-1. We’ll also discuss the opportunities it presents for companies to reduce emissions, stimulate investment in cleaner solutions, and prepare for compliance. 

Why you should watch 

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