As the EU prepares for the launch of ETS2 in 2028, this article examines the importance of market integrity, regulatory clarity, and coordinated implementation in ensuring a credible and effective carbon market for buildings, road transport, and additional sectors across Europe.
As the European Union prepares for the launch of ETS2, its new emissions trading system for buildings, road transport and additional sectors, the focus is increasingly shifting from political agreement to practical implementation.
With the start of the system now scheduled for 1 January 2028 following a one-year delay, the coming months will be critical in determining whether ETS2 can launch smoothly, credibly, and with sufficient market confidence.
In its latest paper, “ETS2 Readiness and Market Integrity: IETA Policy Recommendations”, IETA reaffirmed strong support for ETS2 and called for urgent action to safeguard market integrity and implementation readiness across the EU.
The challenge facing policymakers is significant. ETS2 will extend carbon pricing into sectors that directly affect households and consumers, making political sensitivity, cost predictability, and coordinated transposition across all Member States especially important. At the same time, the system is expected to play a central role in driving emissions reductions across sectors that have historically proven difficult to decarbonise.
