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IETA has dismissed concerns the EU's trading scheme for the heating and transport sectors may be delayed beyond 2027


IETA has dismissed concerns the EU's trading scheme for the heating and transport sectors may be delayed beyond 2027

“I don’t see any reasons for a delay,” Ieta’s EU policy director, Julia Michalak, told Montel in an interview.

“There are a number of conditions mentioned in the [ETS] directive that may cause the start to be delayed, but at the moment we do not expect that they’re going to be met.”

The European Commission has stated that the start of this scheme could be postponed by a year to 2028, in case of “exceptionally high” gas or oil prices in 2026.


The so-called ETS 2 will extend a second emissions trading scheme to cover upstream CO2 emissions from fuel combustion in buildings, road transport and additional small industries not covered by the existing EU ETS.


No alarming signs


“We see regulated entities getting ready, preparing for the for the start of the new system, and I don’t see any alarming signs that something might go wrong,” said Michalak.

Speakers at last week’s Carbon Forward conference in London suggested its impact on households at a time of economic weakness could lead to its revision, delay or both in the coming years.


Tom Lord, head of trading and risk management at Redshaw Advisors, called ETS 2 a “political hot potato”, arguing the scheme’s 2027 launch date is also dependent on other factors including Middle Eastern conflicts and wholesale gas prices.


While Michalak acknowledged the political sensitivity of ETS 2, she pointed to the “very transparent” and long decision process involving all EU member states into the upcoming scheme.


“If the EU is serious about its 2040 and 2050 climate targets, they must tackle emissions in the transport sector in particular,” she said.



source: montel news





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