EU Launches ETS2 to Curb CO₂ from Buildings, Transport, and Small Industry
- brg_news_room
- 4 hours ago
- 1 min read
EUROPE: The EU’s new Emissions Trading System (ETS2), created under the 2023 ETS Directive revision, will target CO₂ emissions from buildings, road transport and small industry not covered by the existing EU ETS. Starting fully in 2027, it will regulate fuel suppliers upstream, requiring them to buy allowances at auction under a cap-and-trade model aimed at cutting emissions 42% by 2030 versus 2005. Revenues must fund climate and social action, notably through the Social Climate Fund (SCF), which will support vulnerable households and micro-enterprises with building efficiency, clean heating, and low-emission mobility. The SCF could mobilise at least US$ 102.29 billion (€86.7 billion) by 2032. Safeguards such as a market stability reserve and possible delay to 2028 aim to ensure a smooth rollout.
Source: European Commission
