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ETS2: The New EU Carbon Market That Will Impact Homes and Transport from 2027

– 13 October 2025

Description

Starting in 2027, the European Union’s Emissions Trading System 2 (ETS2) will begin to affect households, drivers, and small businesses across Europe. This marks a major expansion of the EU’s carbon pricing framework, bringing road transport, buildings, and small-scale industrial activities under the same mechanism that has successfully reduced emissions in the power and heavy industry sectors since 2005 (EU ETS).

Launched as part of the EU’s Fit for 55 package, ETS2 aims to accelerate decarbonisation in sectors that together account for a significant share of Europe’s greenhouse gas emissions. By putting a price on carbon at every level, from fuel suppliers to consumers, the system will drive investment in energy efficiency, renewable heating, and low-carbon mobility.

Andrés Gangutia Fernández, Sr. Corporate Trader for the Spanish Market at Vertis Environmental Finance, recently discussed the implications of ETS2 with the Spanish newspaper El Español. He highlighted the scheme’s scale and its potential to reshape Europe’s energy landscape:
“By 2030, ETS2 is expected to become the largest carbon market in the EU, surpassing ETS1, with an estimated 1.1 billion tonnes of CO₂ under its scope by 2027,” said Gangutia Fernández

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