The EU ETS (European Emission Trading Scheme)

Introduction to the EU ETS

The EU ETS (European Emission Trading Scheme), already applied to sectors such as heavy industry and air and maritime transport, is one of the European Union’s main instruments for combating climate change. This system encourages the reduction of greenhouse gas emissions, particularly CO2, promoting the adoption of more efficient technologies and the use of sustainable fuels.

Scope of Application

As part of the revisions to the ETS Directive, a broader emissions trading system has been defined under the designation ETS 2. This is a separate system from the EU ETS and is tasked with managing CO2 emissions related to buildings, road transport, and additional sectors largely represented by small and medium-sized enterprises not covered by the current EU ETS.

Specifically, the EU ETS “2” system was established by Article 42-ter of Legislative Decree 47/2020, as amended and supplemented by Legislative Decree 147 of September 10, 2024 (published in Official Gazette No. 241 of October 14, 2024), for the areas listed in Annex I-bis of Legislative Decree 47/2020.

In terms of timing, ETS 2 will become operational starting in 2027. The first step in this direction is scheduled for 2025 with emissions monitoring and reporting activities. The ETS 2 system requires CO2 emitters operating in these sectors to offset their emissions through the purchase of allowances. Starting in 2028, the obligation to bear the cost of an “emission allowance” for each ton of CO2 generated will be introduced. From 2025, a preliminary emissions monitoring phase will begin. During this phase, regulated entities, including companies such as Deloa Energy, will be required to quantify and report to the European Commission the CO2 emissions based on the volumes of gas consumed by end customers in the relevant sectors, in accordance with European Regulation 2018/2066/EU.

For further information, please consult:
Ministry of the Environment – ETS2
European Commission – ETS2

Obligations for Regulated Entities in ETS 2

Entities involved in ETS2 must comply with these main obligations:

• Emission Authorization:

Starting January 1, 2025, it will be necessary to obtain authorization to operate in regulated activities and ensure compliance with emission allowance trading regulations.

• Emission Reporting:

From 2025, by April 30 of each year, it will be mandatory to report data on the previous year’s emissions to the European Commission, in accordance with EU Regulation 2018/2066.