Verification in EU-ETS 2

The EU ETS 2 is to be introduced from 2027 as a separate emissions trading system alongside the European Emissions Trading System (EU ETS 1) as part of the ‘Fit for 55’ package. The aim of the system is to regulate fuel emissions generated in the building, road transport, energy, manufacturing and construction sectors that do not fall within the scope of EU ETS 1.

Similar to EU ETS 1, companies subject to emissions trading in EU ETS 2 must record and report annual emissions from the previous year. The emissions reports must be checked and verified by an organisation approved by the national accreditation body (in Germany, the German Accreditation Body – DAkkS). Certificates (or emission allowances) must be surrendered in accordance with the verified emissions. The so-called CO₂ certificates can be auctioned, traded and managed via the Union Registry.

Who is affected by EU ETS 2?

Those subject to emissions trading are the distributors of fuels, not the users of fossil fuels in road transport, buildings and other sectors not covered by EU ETS 1. This applies, for example, to wholesalers, importers and storage operators of fuels.

The EU ETS 2 also applies to all fuels intended for use as heating fuel or motor fuel in accordance with Article 2(3) of the EU Energy Tax Directive.

What are the requirements of EU ETS 2?

As part of the ‘Fit for 55’ package, the Emissions Trading Directive (EHRL) was supplemented with regulations on EU ETS 2 and thus forms the basis for emissions reporting, analogous to EU ETS 1. The changes to the EU Directive were implemented through the amendment of the Greenhouse Gas Emissions Trading Act (TEHG). Emissions monitoring and reporting are also subject to the EU-wide Monitoring Regulation (EU) 2018/2066 and the regulations of the DEHSt. Regulations on the conditions for the accreditation and monitoring of verification bodies are set out in the Verification Regulation (EU) 2018/2067.