EU institutions and Member States agreed to postpone the start of Emissions Trading System 2 (ETS2) within the European Union, revising the timeline to 2028 in order to integrate the measure into the revised climate law while considering progress reviews and competitiveness.
EU negotiators reached a provisional agreement on amendments to the EU Climate Law, including a revised intermediate target to reduce net greenhouse gas emissions by 90 % by 2040 compared with 1990 levels. As part of this agreement, the start of the new Emissions Trading System covering CO₂ emissions from fuel combustion in buildings and road transport (ETS2) has been postponed from 2027 to 2028.
ETS2 is designed to place a carbon price on emissions from heating and other fuel use in buildings and on fuels for road transport, complementing the existing EU ETS that addresses industrial and energy emissions. The system aims to provide a market signal to support investments in energy efficiency measures, building renovations, and low-carbon solutions.
Under the climate law agreement, EU institutions will review progress every two years, taking into account scientific data, technological developments, and competitiveness concerns. The delay reflects negotiations on how best to align climate ambition with economic and social considerations across member states.
The ETS2 postponement to 2028, agreed within the revised EU Climate Law, adjusts the timeline for carbon pricing on buildings and transport, while maintaining the framework intended to encourage energy efficiency improvements and investment in low-emission technologies.
