Emissions Trading System for buildings, road transport and small industry (ETS2): cap adopted for 2027

The Commission has adopted a Decision establishing the EU-wide quantity of allowances issued under the EU Emissions Trading System for buildings road transport and small industry (ETS2) for 2027. This cap will amount to 1 036 288 784 allowances for 2027 and contributes to the EU achieving its 2030 climate targets.

The calculation of the cap for 2027 is based on the average CO₂ emissions from fuel combustion in the ETS2 sectors from 2016 to 2018. This average is reduced up to the year 2027 as follows:

• firstly, until 2024, through a linear reduction trajectory based on all emissions within the scope of the Effort Sharing Regulation;
• secondly, for the years 2025-2027, through an annual linear reduction factor of 5.1% in accordance with Article 30c(1) of the ETS Directive.

The ETS2 cap for 2027 includes the States of the European Economic Area and the European Free Trade Association (EEA-EFTA States).

The ETS2 cap for 2028 will be determined at a later stage, based on the average CO₂ emissions reported by the ETS2 regulated entities for the years 2024 to 2026.

The Decision, to be published shortly in the Official Journal, fulfils the Commission's obligation under the ETS Directive to publish the Union-wide quantity of allowances for the year 2027 by 1 January 2025.