IETA has issued new policy recommendations to ensure a smooth and credible launch of the EU’s emissions trading system for buildings, road transport and additional sectors (ETS2), reaffirming its strong support for the system’s start on 1 January 2028.
IETA reiterates its strong support for early auctions beginning on 1 January 2027, stressing their role in providing liquidity, reducing price uncertainty and enabling long-term hedging ahead of the system’s start.
As preparations for auctions advance, IETA members urge the Commission to clarify rules for Member States that may not transpose ETS2 in time, warning that inconsistent approaches risk fragmenting the market.
Additionally, IETA voices support for a balanced approach to revising the Market Stability Reserve for ETS2, cautioning against extreme safeguards that could distort the system. Clear, simple, and harmonised rules on ETS2 cost pass-through will also be essential for market preparedness.
With the one-year delay in the market’s launch agreed by EU co-legislators, IETA urges Member states to rapidly transpose ETS2 into national legislation and to submit their Social Climate Plans, which will enable them to gain early access to supporting measures and revenues from early auctions to support their transition.
“Harmonised transposition of ETS2 legislation will be crucial to safeguard the credibility of the market ahead of its planned start in 2028,” said Svea Nyberg, EU Policy Officer at IETA. “Member States must accelerate efforts to integrate the system in order to unlock early revenues and essential support from the Social Climate Fund.”
IETA emphasises that ETS2 is well‑positioned to deliver significant emissions reductions provided that regulatory clarity, coordinated implementation and timely national action remain top priorities ahead of its start.
