EU ETS 2 – EU EMISSIONS TRADING SYSTEM

Introduction

Climate change and the new European Union regulations, such as the EU ETS 2, have created increased obligations for companies operating in the fuel market. Within this new framework, the verification of emission reports is a key mechanism for ensuring compliance, reliability, and transparency.

TÜV AUSTRIA HELLAS, with a strong presence in the verification of environmental data, offers comprehensive verification services in accordance with the EU ETS and international standards ISO 14064-1, ISO 14064-2, and ISO 14068. Based on this expertise, we support obligated companies to:

• fully comply with regulatory requirements,
• obtain reliable and technically sound verifications,
• enhance transparency and corporate reputation,
• benefit from targeted solutions for sustainable growth.

By choosing TÜV AUSTRIA, companies partner with an independent and accredited body that provides technical competence and tangible value in their transition to the new EU ETS 2 compliance framework.

Brief Description

The EU Emissions Trading System 2 (EU ETS 2) is a new initiative by the European Union in the fight against climate change. Monitoring began in 2025, while the system will become fully operational in 2027.

Unlike EU ETS 1, which applies to power plants, industry, aviation, and shipping, EU ETS 2 covers emissions from fuels used in the buildings, road transport, and additional sectors. The regulation targets fuel suppliers who place these fuels on the market, rather than end consumers.

Detailed Description

Obligated entities must:

• monitor and report the quantities of fuels released for consumption,
• submit annual CO₂e emission reports,
• have their data verified by an accredited verifier (mandatory from 2026),
• surrender the corresponding number of allowances in the Registry.

Key Features of EU ETS 2 Verification

• Monitoring Plan: Submission and approval by the competent national authority by August 2024.
• Annual Emission Report: Submission by 30 April each year.
• Verification: Mandatory from
• Allowance Surrender: By 31 May each year.

Who Is Subject to EU ETS 2?

EU ETS 2 does not apply to end users (households, drivers, etc.) but to companies placing fuels on the market and already subject to Excise Duty (ΕΦΚ), such as:

• Licensed storage operators/tax warehouse holders releasing fuels for consumption.
• Suppliers of liquid fuels (gasoline, diesel, heating oil, kerosene, heavy fuel oil).
• Distributors of liquefied petroleum gas (LPG) and natural gas (NG, LNG, CNG, biomethane) for transport and heating.
• Suppliers of solid fuels (coal, lignite, coke).
• Fuel importers placing fuels directly on the market (outside tax warehouses).
• Any other legal entity required to pay or declare excise duty, even if exempted (e.g., supplying fuels to households).
• Certain companies designated by Member States as obligated entities in cases of ambiguity or shared responsibility.

Types of Fuels Covered by EU ETS 2

The following fuels are included in EU ETS 2:

• Gasoline, diesel, kerosene
• Liquefied petroleum gas (LPG), natural gas
• Heavy fuel oil, coal, and coke
• Any other fuel used for heating or transport (Article 2(3) ETD), such as fuel additives, certain biofuels, and other hydrocarbons, excluding peat

Fuels Exempt from EU ETS 2

• Peat
• Waste used as fuel (hazardous or municipal)
• Solid biomass (e.g., wood fuels)
• Charcoal derived from wood

Benefits of Verification

• Regulatory Compliance: Ensures alignment with EU regulations, avoiding penalties and legal issues.
• Enhanced Credibility: Strengthens the company’s reputation for transparency and environmental responsibility.
• Risk Management: Identifies and mitigates potential risks in emission reporting. A key benefit is that verification ensures companies do not surrender more allowances than actually required.