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ARTICLE · 19 MAY 2023

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Fit For 55 And REPowerEU: Expanded EU Emissions Trading System

Arthur Cox
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Further legislation to speed up energy transition and drive down emissions has been agreed. We last checked in on progress in April here and here. Developments since then leading to finalised instruments are set out below.

IrelandEnergy and Natural Resources
Katrina Donnelly
Katrina Donnelly
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Further legislation to speed up energy transition and drive down emissions has been agreed.

We last checked in on progress in April here and here. Developments since then leading to finalised instruments are set out below.

EU Emissions Trading Scheme & Carbon Border Adjustment Mechanism

The Council adopted several instruments to underpin a strengthened EU ETS and new Carbon Border Adjustment Mechanism, which means they will now be signed by the Council and Parliament, published in the OJEU, and enter into force.

In addition to adjusting the EU ETS to further reduce emissions (by 62% in 2030 compared to 2005), the revised legislation brings in emissions from shipping and phases out free allowances for aviation, with full auctioning in that sector to be in place from 2026. The institutions also agreed proposals to require from 2025 increasing volumes of sustainable fuel to be blended in aviation fuel.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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