Source: European Parliament
The Commission and the Member States are working towards the timely implementation of the new Emissions Trading System for buildings, road transport and additional sectors (ETS2), which was adopted by the European Parliament and the Council in 2023. This includes regular technical level discussions and exchanges at the political level with all Member States, including Poland.
Several safeguards are already in place to allow for a smooth start of ETS2, including a safeguard to delay the start of the system from 2027 to 2028 in case energy prices are exceptionally high in the first half of 2026.
In addition, several triggers would release additional ETS2 allowances from the Market Stability Reserve in case of sharp prices increase or imbalances in the supply of ETS2 allowances.
Furthermore, the total number of allowances auctioned in the first year of the system will be 30% higher than the ETS2 cap, to ensure a smooth start of the system.
Finally, by taking early action, Member States can help keep ETS2 prices in check. Member States can finance such measures from the revenues ETS2 will raise.
Part of the revenues will fund the new Social Climate Fund (SCF) in order to protect vulnerable groups and alleviate the ETS2’s impacts. Poland is the biggest beneficiary of the SCF.