The EU Commission adopts new ETS Union Registry Regulation for Fit for 55

The European Commission has adopted a new Delegated Regulation amending the ETS Union Registry Regulation, following the revision of the ETS Directive in the context of the Fit for 55 legislative package. It will be submitted to the European Parliament and Council for scrutiny and, if agreed, should enter into force by the end of 2023.

The revised ETS Directive introduces amendments related to the extension of scope of ETS to cover maritime transport as of 2024, amendments related to the new and separate emissions trading system for buildings, road transport and other sectors as of 2027, amendments to reflect the changes of compliance date in EU ETS Directive for operators to surrender allowances and amendments related to the transparency and the integrity of the European carbon market. It also introduces simplifications to ensure the full fungibility of general and aviation allowances as of 2025 and to prevent the transfer of free allocations to non-compliant installations and aircraft operators.

Earlier in October 2023, the European Commission adopted a new Auctioning Regulation. It includes changes in the scope of the ETS to cover the maritime sector and to cover the auctioning of allowances for a new and separate emissions trading system for buildings, road transport and other sectors. It also includes updates to the auctioning of aviation auction volumes, the auctioning of allowances for the Innovation Fund, and the introduction of new provisions for the auctioning of allowances for the Recovery and Resilience Facility in the context of REPowerEU and for the Social Climate Fund.