New European Union Emissions Trading System for the Buildings, Road Transport and Other Sectors

Decree-Law no. 182/2026 has been published, partially transposing Directive (EU) 2023/959 and establishing a new European Union Emissions Trading System applicable to the buildings, road transport and other sectors (“EU ETS 2”).

The Decree-Law extends the scope of the European Union Emissions Trading System, which already covered stationary installations, aviation and maritime transport, to include, as from 2025, the buildings, road transport and other sectors.

Unlike the EU ETS regime applicable to stationary installations, monitoring and reporting obligations under the EU ETS 2 fall on regulated entities – i.e., the entities responsible for releasing for consumption the fuels used in the sectors covered by the regime – rather than on direct emitters of greenhouse gases.

The new regime governs, in particular, the granting and updating of greenhouse gas emissions permits, the obligations relating to the monitoring, reporting and verification of emissions, the transfer and surrender of emission allowances, as well as the applicable inspection and administrative offence regime.

Monitoring and reporting obligations apply from 2025 onwards, while the obligation to surrender emission allowances will only apply from 2028 (with the first surrender deadline being 31 May 2029). Regulated entities already carrying out their activities must apply for an emissions permit within 30 days of the entry into force of the relevant legislation.

For further information, the Decree-Law is available here.