A separate emissions trading system (also known as ETS-2) is being established for buildings, road transport and additional sectors, in respect of emissions of carbon dioxide from the activity listed in Annex III to the EU ETS Directive: the release for consumption of fuels which are used for combustions in those activities.
ETS-2 is due to start in 2027. However, if conditions as set out in the Directive are met, the start of this system may be postponed to 2028.
Obligations
Regulated entities are required to, from 1 January 2025, hold a greenhouse gas emissions permit issued by a Member State’s Competent Authority.
A regulated entity shall prepare a monitoring plan for the monitoring of emissions attributed to the fuels it releases for consumption which are used for combustion in the relevant activities. The monitoring plan shall be approved by the Competent Authority.
A regulated entity shall, each year, monitor emissions and submit to the Competent Authority an annual emissions reports duly verified by an independent, accredited verifier. It shall then surrender allowances in respect of reported emissions.
Furthermore, from 1 January 2028, each regulated entity shall report, to the Competent Authority, the average share of costs related to the surrender of allowances which it has passed on to its consumers for the preceding year.
Contacting the competent authority:
You may contact MRA on matters relating to ETS-2 at: emissions_trading_scheme@mra.org.mt.