EU ETS 2: The European Commission clarifies provisions relating to the timetable and auctions

The European Commission is amending and clarifying several provisions relating to the timetable and management of emissions allowance auctions in order to “ensure a smooth start” for the new EU ETS 2 carbon market, which will cover emissions from fuels used in particular in the road transport and buildings sectors, in a delegated regulation published in the Official Journal of the European Union on 15/06/2026.

Adopted by the EU in 2023, the EU ETS 2 is due to start in 2028 and complements the EU ETS 1, established in 2003, which covers emissions from heavy industry, energy, aviation and maritime transport sectors.

The regulation:
• sets out the rules for coordination between the common auction platform and the derogation platforms;
• requires the early launch of auctions for EU ETS 2 allowances from 2027, “in order to ensure sufficient liquidity at a very early stage so as to send market participants a clear and predictable price signal from the outset”: the initial volume of allowances available is set at 450 million from 01/01/2027 to 31/12/2028;
• adjusts the number of allowances to…