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 arising from fuels released for consumption and used for combustion in buildings, road transport, and additional sectors such as manufacturing industries and construction.
ETS-2 is scheduled to commence in 2027.
Legal Framework
The Climate Action Authority is Malta’s competent institution for advancing national climate commitments under the Climate Action Act (Cap. 643).
The European Union Greenhouse Gas Emissions Trading Scheme for Buildings, Road Transport and Additional Sectors Regulations, Subsidiary Legislation 643.05, transpose the relevant requirements of Directive 2003/87/EC, as amended.
Scope
ETS-2 regulates the entities that release fuels for consumption rather than individual drivers, homeowners, or other final consumers.
Buildings
Includes carbon dioxide emissions from fuels used for combustion in residential, commercial, and public buildings.
Road Transport
Includes carbon dioxide emissions from fuels used for combustion in road transport.
Additional Sectors
Includes additional activities such as manufacturing industries and construction.
Obligations for regulated entities
Emissions Permit
From 1 January 2025, regulated entities must hold a greenhouse gas emissions permit issued by the competent authority of their Member State.
Monitoring Plan
Each regulated entity must prepare a comprehensive monitoring plan covering emissions from fuel released for combustion in the specified activities and submit it to the competent authority for approval.
Annual Reporting
- Monitor emissions continuously track emissions throughout the year.
- Submit verified emissions reports annually to the competent authority.
- Surrender allowances equivalent to the reported emissions.
Cost Reporting
From 1 January 2028, regulated entities must report the average share of allowance-surrender costs passed on to consumers during the previous year.
Contact Us
For enquiries related to ETS2 for buildings, road transport, manufacturing industries, and construction, please contact the Climate Action Authority.
Email: [email protected]
Telephone: +356 23850500
