PARLIAMENT AND COUNCIL AGREES TO POSTPONE ETS2 IMPLEMENTATION TO 2028
The European Council and Parliament have proposed to postpone the entry into force of the EU Emissions Trading System for buildings and road transport, known as ETS2, by one year, from 2027 to 2028. This decision follows the adoption of their respective positions on the EU’s 2040 climate target, which aims for a 90% reduction in net greenhouse gas emissions compared to 1990 levels. The postponement reflects concerns raised by several Member States, particularly in Central and Eastern Europe, about the potential impact of ETS2 on households and businesses during a period of economic uncertainty and high energy prices.
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. The European Commission has also proposed measures to mitigate the social and economic impacts of the new system, including the use of the Social Climate Fund to support vulnerable households and businesses. 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.
The postponement needs to be confirmed with the trilogues negotiations on the file, which should be achieved shortly. CLECAT will continue to monitor developments closely, as the logistics sector prepares for the eventual implementation of ETS2 and its implications for transport operations and supply chain costs. The postponement must be an opportunity for Member States to introduce measures to facilitate the transition towards low- and zero-emission vehicles, helping companies to offset the expected increased fuel costs due to ETS2 implementation. Revenues from this scheme should be earmarked to develop zero-emission technologies, through improved grid connections, as well as fiscal and financial measures to acquire and operate zero-emission vehicles.
Source: European Parliament, Council