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The Parliament and the Council have formally agreed to delay the implementation of the second Emissions Trading System (ETS2), which covers emissions from road transport and buildings, until 2028. This decision was finalised during the trilogue negotiations on the EU’s 2040 climate target, concluded on 10 December. Both institutions had previously signalled their support for the postponement, which will now take effect automatically once the trilogue agreement is definitively adopted, without requiring further action from the European Commission.

The delay is intended to provide additional time for Member States to prepare for the implementation of ETS2, ensuring a smoother transition and allowing for better alignment with national carbon pricing systems already in place in some countries. While the postponement offers temporary relief, it has sparked debate among stakeholders, with some arguing that it risks slowing down the EU’s decarbonisation efforts in the transport and buildings sectors.

CLECAT views the postponement of ETS2 as an opportunity for member states to implement supportive measures that accelerate the transition to low- and zero-emission vehicles. Such measures should help businesses manage the anticipated rise in fuel costs resulting from the introduction of ETS2. To maximise the scheme’s effectiveness, revenues generated should be specifically allocated to advancing zero-emission technologies. This includes investing in enhanced grid infrastructure, as well as providing fiscal and financial incentives to encourage the adoption and operation of zero-emission vehicles.

Source: Council of the EU