On Tuesday evening, negotiators from the European Parliament and the Council reached a preliminary agreement which, alongside setting a new emissions-reduction target, officially delays the start of ETS2 by one year to 2028. This is a key decision for road transport and buildings—two sectors where CO₂ reductions have been progressing the slowest.
ETS2 only from 2028 – less pressure in the early years
According to the European Parliament’s announcement, the ETS2 system for fuels used in buildings and road transport will now be introduced in 2028. The postponement reflects concerns that earlier implementation could drive energy and fuel prices up too quickly.
The decision forms part of a broader agreement setting the new EU objective: a 90% reduction in greenhouse gas emissions by 2040 compared with 1990 levels. Negotiators stressed that the climate transition must be compatible with the competitiveness of the European economy.
Importantly, although the launch date has been pushed back, the obligation to collect and report emissions data remains unchanged. This reporting framework will form the basis for the full rollout of the system in 2028.
New flexibilities for EU countries
The agreement includes additional mechanisms designed to ease the costs of the transition. From 2036, up to 5% of emission reductions may come from international carbon credits compliant with the Paris Agreement. Following pressure from Parliament, safeguards were added to ensure such credits cannot support projects that undermine the EU’s strategic interests.
Permanent national CO₂ sinks may compensate for emissions in sectors that are difficult to decarbonise. In addition, cross-sector flexibilities have been expanded with the aim of lowering the cost of meeting the new requirements.
These elements—often less visible in the public debate—indicate that the EU intends to balance climate ambitions with economic realities.
Safety clause: review every two years
A key component of the agreement is the review mechanism. Every two years, the Commission will assess:
- the economic situation,
- energy price levels,
- the competitiveness of EU businesses, and
- the impact of regulations on households.
If the analysis shows that the 90% reduction target for 2040 cannot be achieved without threatening social or economic stability, the Commission may propose adjusting the climate goal or introducing additional safeguards.
This provision is particularly relevant for the transport industry, where energy and fuel costs critically shape company profitability.
What the delay means for road transport
For hauliers, the postponement of ETS2 mainly provides extra time to plan budgets, revise price lists and renegotiate contracts. However, the direction of travel is unchanged: fuel prices will rise, as fuel suppliers are expected to pass the cost of CO₂ allowances on to end users.
The introduction of ETS2 is intended to accelerate investment in energy efficiency and low-emission technologies in both buildings and transport. This represents a major challenge for European hauliers—especially small and medium-sized operators who work on tight margins and are highly exposed to fuel price volatility.
