Sweden extends EU ETS 2 application

Market: Agriculture, Biofuels, Emissions
28/11/24

The European Commission has approved the application of the new emissions trading system for road transport and buildings (EU ETS 2) to additional sectors in Sweden.

Sweden will unilaterally apply the new system to emissions from freight and passenger railway transport, non-commercial leisure boats, airport and harbour off-road machinery, and fuel combustion in agriculture, forestry and fishing.

The extension means additional carbon allowances will be issued to the country in 2027, on the basis of emissions from the activities listed calculated at 1.68mn t of CO2 equivalent. Sweden must monitor and report emissions from the additional sectors from 1 January.

The EU ETS 2 is due to launch fully in 2027, and will apply in its basic form to fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS, in all the bloc's member states plus Norway, Iceland and Liechtenstein.

The commission approved similar unilateral extensions of the system's scope in the Netherlands and Austria in September.

By Victoria Hatherick

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