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EU Pushes ETS2 for Buildings and Transport to 2028 as Parliament Backs Delay

EU lawmakers endorsed a one-year delay to ease concerns over fuel and heating price spikes.

Overview

  • The revised start moves emissions trading for heating and road fuels to 1 January 2028 following pressure from several Eastern European countries including Poland and Romania.
  • Negotiators target an initial price near €50 per tonne of CO2, with market tools such as the stability reserve intended to temper early price surges.
  • Germany already charges €55 per tonne under its national BEHG scheme, creating a short-term price gap that industry and municipal utilities warn could hurt competitiveness and planning.
  • ETS2 extends carbon pricing to households and fuel suppliers in buildings and road transport, shifting certificate costs that are likely to be passed through to consumers.
  • The European Parliament’s stance aligns closely with EU governments, making final legal adoption largely procedural, while analysts expect certificate prices to climb toward €100–130 per tonne by 2030.