The First Trade Under EU ETS 2 Marks a New Chapter in European Carbon Markets

On Tuesday 6th May, the first trade under the EU ETS 2 was executed, marking the beginning of a new phase in Europe’s carbon market. The EU ETS 2 extends emissions trading to buildings and road transport fuels, expanding the scope of regulated sectors under the European Union’s climate policy framework.

What is EU ETS 2?

EU ETS 2 is the EU’s new emissions trading system for fuel distributors supplying the road transport and buildings sectors. The system is scheduled to formally begin in 2027, but trading activity has already started among early participants.

This marks a significant milestone in the EU’s broader decarbonisation agenda, as the scheme aims to drive emission reductions in previously uncovered sectors. The addition of these industries introduces new dynamics and participants to Europe’s carbon market, shaping the next stage of its evolution.

Supporting Businesses in the Transition

At Grey Epoch, we are ready to support companies affected by EU ETS 2, from understanding regulatory obligations to purchasing allowances and managing market exposure.

Our experience across the EU and UK ETS enables us to help clients prepare for compliance, develop procurement strategies, and engage effectively in this new market.

If your business is impacted by ETS 2 or looking to participate early, get in touch with us.

We are here to help you navigate the next phase of EU climate regulation with clarity and confidence.