EU ETS2 is the European Union’s second emissions trading system, extending the “polluter pays” principle to fuels for road transport and buildings. It sits alongside the original ETS (industry and energy) and introduces a cost on the CO₂ emissions linked to diesel and petrol.
How it works
Unlike the main ETS, ETS2 falls on fuel suppliers, who pass the cost downstream: in practice, a rise in the price of diesel proportional to emissions. It’s due to start from 2027, with a growing economic impact in the following years.
Why it matters for fleets
For anyone running combustion vehicles, ETS2 means a structurally higher fuel cost that weighs on cost per kilometre and TCO and accelerates the case for electric. For impact scenarios, see ETS2 and road transport: what changes from 2028.
FAQ
When does ETS2 come into force?
The mechanism on fuels is due to start from 2027, with a price impact that grows in the following years. Exact dates may be subject to EU adjustments.
Who pays for ETS2?
Formally the fuel suppliers, but they pass the cost on to the final price: in effect it’s paid by those who consume diesel and petrol, fleets included.