The Emissions Trading System: Driving Sustainable Industry

The Emissions Trading System for Buildings, Road Transport, and Additional Sectors (ETS-2)

The European Union is establishing a separate Emissions Trading System (ETS-2) for carbon dioxide emissions from the release for consumption of fuels which are used for combustion in the sectors of buildings, road transport and additional sectors such as manufacturing industries and construction. ETS-2 is scheduled to commence in 2027.

Obligations for Regulated Entities

Emissions Permit

Starting January 1, 2025, regulated entities must be in possession of a greenhouse gas emissions permit from their Member State’s Competent Authority.

Monitoring Plan

Each regulated entity must:

  1. Prepare a Monitoring Plan: Develop a comprehensive plan to monitor emissions from the fuels it releases for combustion in the specified activities.
  2. Approval: Submit the plan to the Competent Authority for approval.

Annual Reporting

  • Monitor Emissions: Continuously track emissions throughout the year.
  • Submit Reports: Annually submit verified emissions reports to the Competent Authority.
  • Surrender Allowances: Surrender allowances equivalent to the reported emissions.

Cost Reporting

From January 1, 2028, regulated entities must also report the average share of costs related to the surrender of allowances that have been passed on to consumers for the previous year.

Contact Us

For inquiries related to the Emissions Trading System for buildings, road transport, manufacturing industries, and construction (ETS-2) , please contact the Climate Action Authority:

Email: ets.caa@climateaction.gov.mt

Phone: +356 23850500

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