German Emissions Trading Authority (DEHSt) at the German Environment Agency

Reform and prospects

Emissions trading in Europe has been adjusted and expanded as part of the ‘Fit for 55’ legislative package.

Source: © Gaj Rudolf / Fotolia

The emissions cap was subsequently tightened to ensure that the increased emissions reduction target for 2030 could be met. To protect against carbon leakage, a carbon border adjustment mechanism (CBAM) was introduced for certain products, with a transitional phase starting in October 2023 and the regular phase beginning in 2026. In addition, maritime transport has been included in the European Emissions Trading System 1 (EU ETS 1) since 2024. The heating and transport sectors are expected to be covered by a separate European Emissions Trading System 2 (EU ETS 2) from 2027.

The next reforms of the EU ETS 1 for the period after 2030 are already in sight: possible additions to the scope and other important topics for further development are currently being discussed by many stakeholders. Under Article 30 of the Emissions Trading Directive (ETD), the European Commission will present a report on many of these topics by 2026, accompanied, as appropriate, by a legislative proposal and an impact assessment.

Further pages

Reform and prospects

Expanding the Scope

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Source: Gina Sanders - Fotolia

Increasing Climate Protection Ambition

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