New emissions trading system for road transport (ETS II) to be applied in 2027

A new emissions trading system for road transport (ETS II) is one of the adopted key proposals by the Council on 25 April 2023. The system will apply to road transport fuel suppliers starting 2027, unless oil and gas prices are exceptionally high.

The compromise to launch ETS II in 2027 – compared to 2024, as initially supported in the European Parliament, or even 2025 and 2026, as first proposed by the European Commission – is significantly more realistic, given the expected pace of infrastructure and technological development.

ETS II will generally supersede existing national schemes, unless national schemes set higher prices for allowances.

ESC welcomes the ETS II as an incentive to choose green technology. ETS also gives more transparency on the negative impact of transport to the climate. The present time schedule is more realistic. At the same time, all stakeholders should monitor if all pre-conditions for greening are fulfilled by the moment of implementation. ETS should not function as a cash cow but should be seen as an instrument to promote more sustainable behaviour.