What is EU ETS2?
EU ETS2 is a new emissions trading system within the EU Emissions Trading System (EU ETS). The system focuses on CO₂ emissions from sectors that were not fully covered by the existing ETS, such as:
- Buildings
- Road transport
- Small industrial installations
The system will be launched in 2027 and is an important part of the European Green Deal and the broader climate strategy of the European Union. EU ETS2 introduces a carbon pricing mechanism in which emissions receive a financial value, encouraging organisations to reduce their emissions.
Within this system, responsibility for emissions shifts to fuel suppliers. They must monitor, report and have verified the emissions resulting from the fuels they place on the market. Part of the system’s revenues will be used for climate measures and support for vulnerable groups through the Social Climate Fund.
EU ETS2 obligations and compliance cycle
Organisations covered by EU ETS2 must comply with several obligations within the annual compliance cycle.
| Phase | Requirement | Deadline |
| Permit & Monitoring Plan | Companies must have an emissions permit and an approved monitoring plan | No later than 1 January 2025 |
| Start monitoring | Monitoring of annual emissions begins | From 1 January 2025 |
| Emissions report | Submit annual emissions report | No later than 30 April |
| Verification | Emissions data must be verified by an accredited verifier | From 2026 |
| Surrender allowances | Surrender allowances for verified emissions | No later than 31 May (from 2028) |
Who must comply with EU ETS2?
EU ETS2 applies to organisations that supply fuels for combustion within the European Union in sectors such as buildings and road transport.
This includes, among others:
- Fuel suppliers and distributors
- Energy companies supplying fuels to installations outside the existing ETS
- Companies that import, blend or place fuels on the market
For these organisations, accurate emissions reporting and verification will be essential to comply with the regulation and reduce financial risks.
How Normec Verifavia helps with EU ETS2 verification
EU ETS2 introduces new obligations for Monitoring, Reporting and Verification (MRV). Normec Verifavia supports organisations with reliable and efficient verification of emissions data.
Our approach includes:
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Proven verification expertise
Normec Verifavia has more than ten years of experience in emissions verification within the EU ETS for aviation and maritime sectors.
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2.
Efficient and reliable verification process
We provide fast and accurate verification based on a clear and established methodology.
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3.
Full compliance support
From pre-checks to post-verification support, we guide organisations through the entire MRV process.
For EU ETS2, Normec Verifavia has developed a specific Verification Program (EU ETS2 Verification Program v1 – Feb 2026), which is shared with clients prior to engagement.
What does this mean in practice?
- You comply with EU ETS2 reporting obligations
- You avoid errors in emissions calculations
- You minimise the risk of financial penalties
- You gain insight into emissions within your fuel supply chain
- You improve transparency towards regulators and stakeholders
The future of emissions trading
EU ETS2 represents an important expansion of the existing European emissions trading system. By integrating emissions from buildings, transport and smaller industries, the EU increases the impact of its climate policy.
For companies, this means that reliable emissions monitoring and verification will become increasingly important. Organisations that prepare their monitoring and reporting processes in time can reduce compliance risks and better prepare for future regulations.
Would you like to know more about EU ETS2?
What is EU ETS2?
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EU ETS2 is a new emissions trading system covering carbon emissions from buildings, road transport and small industrial installations.
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Monitoring starts in 2025, verification becomes mandatory from 2026 and surrendering of allowances starts in 2028.
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Companies supplying fuels for combustion in buildings, transport and small industries within the EU.
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Verification by an independent party ensures that emissions data are correctly calculated and reported in accordance with EU ETS2 regulations.
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Organisations covered by ETS2 must complete several steps:
Prepare and obtain approval for a Monitoring Plan (MP)
Monitor emissions based on fuel released for consumption in sectors covered by ETS2
Prepare an Annual Emissions Report (AER)
Have the emissions report verified by an accredited verifier
These steps are part of the Monitoring, Reporting and Verification (MRV) process.
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EU ETS2 expands the existing EU Emissions Trading System (ETS1) to new sectors such as road transport and buildings.
While ETS1 mainly focused on stationary installations, aviation operators, and maritime transport activities, ETS2 shifts the reporting obligation to fuel suppliers. These regulated entities must monitor and report the emissions resulting from the fuels they place on the market. The EU ETS2 expands emissions trading new sectors by regulating fuel suppliers rather than individual consumers. This upstream approach avoids the significant administrative burden of requiring millions of individual car and building owners to monitor and report emissions..
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ETS2 uses a tier system to define the required accuracy level for monitoring and reporting emissions.
Companies determine the applicable tier based on::
The type of fuel and size of emissions
The required accuracy of activity data and calculation factors
The technical and economic feasibility of higher-tier methods
Lower tiers use simpler methods with higher uncertainty, while higher tiers require more detailed and accurate measurements. Larger organisations or more complex fuel streams typically require higher tiers.
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The scope factor determines what proportion of fuel consumption is covered by ETS2.
This factor helps organizations correctly allocate emissions to sectors such as:
- Buildings
- Road transport
Using the scope factor prevents double reporting of emissions and ensures consistent emissions tracking across sectors.
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Key compliance dates include:
- April 30, 2026 - submission of the first verified emissions report (2025)
- May 31 of each year - surrender of allowances for verified emissions from the previous year