EU ETS 2 — Buildings, Road Transport and Small Industry

Applies to

Fuel suppliers placing fuels for buildings, road transport and small stationary combustion onto the EU market.

Key points

• Upstream regulated entities (fuel suppliers), not end-emitters.
• Trading starts 2027; price-stabilisation mechanism (MSR-style) embedded.
• Social Climate Fund (~€86bn 2026–2032) for vulnerable households and micro-enterprises.

Applicability triggers

• Indian-owned EU subsidiary acting as a fuel supplier or distributor.

Practitioner questions

• How does ETS 2 interact with national CO₂ taxes already applied to fuels in some Member States?

Sources

• European Commission — ETS 2