ETS2 is a new emissions trading system based on the ‘cap and trade’ principle, covering greenhouse gas emissions from buildings, road transport, and additional sectors not included in the original EU ETS. Its purpose is to drive emissions reductions in these previously unregulated areas by putting a price on carbon. Emissions are capped and converted into tradable allowances, with the cap decreasing each year to incentivise decarbonisation.
The ETS2 will be launched in 2025, with the first compliance obligations starting in 2027.
ETS2 applies across all EU Member States and covers emissions from the combustion of fuels in buildings, road transport, and certain additional sectors, such as small-scale industry not already covered under the original EU ETS.
Specifically, it regulates fuel suppliers, rather than end-users like households or drivers, making them responsible for purchasing and surrendering allowances for the emissions associated with the fuels they sell.
Here at Swan we can help ETS2 operators ensure full compliance with the scheme. We have been closely following ETS2 since its inception and regularly attending specialised training to stay up to date with the evolving requirements.
We also have strong working relationships with various verification bodies whose involvement becomes mandatory from 2026. Therefore, we are well positioned to guide fuel suppliers through the complexities of the monitoring, reporting, and verification (MRV) process ensuring a smooth and compliant transition into the new system.
Swan Energy ensures you are fully compliant with all the aspects of the scheme, relieving hassle and the risk of mistakes. We offer peace of mind that all the obligations and requirements of the scheme are met and are a trusted partner and adviser. We shield our clients from the complexities of the reporting process and take the headache out of compliance.
Our ETS2 compliance and reporting service is always tailored to your needs and can include:
We support over 90 UK installations with their mandatory energy reporting.
Swan Energy reported over one1 million tonnes of CO2 for ETS clients in the last reporting year.
Average cost of Carbon. Data for 2023.
Our partnership with Redshaw Advisors enables clients to benefit from an end-to-end compliance service which includes the purchase of allowances, registry support and carbon market advice.
Do you have more questions about ETS2? The Swan Energy team has lots of KNOW HOW and we are experts in this field. Tap into our bank of knowledge…
Swan Energy
Cygnus House, 3 Ned Lane
Slaithwaite, Huddersfield
West Yorkshire
HD7 5HQ
