European Commission refers Spain and Poland to EU Court over ETS rules

The European Commission has decided to refer Spain to the Court of Justice of the European Union (CJEU) for failing to transpose the revised EU Emissions Trading System (EU ETS) Directive into national legislation (EC press release, 04/06/2026). The Commission has also decided to refer Spain and Poland to the Court for failing to transpose the revised ETS aviation Directive.

EU Member States were required to incorporate the revised EU ETS Directive, which governs the trading of GHG emission allowances within the Union, into national law by 31 December 2023. The amended legislation strengthens the existing ETS framework on power generation, industry, and aviation, extends emissions trading to the maritime transport sector, accelerates the reduction of available emissions allowances, and updates the rules governing free allocation. 

At the same time, Member States were also required to transpose the revised ETS Aviation Directive by 31 December 2023. The updated aviation rules are designed to enhance the sector’s contribution to the EU’s climate goals and to implement the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). As Spain and Poland have not yet communicated any transposition measures, the European Commission has also decided to refer both countries to the CJEU for failing to transpose the revised ETS Aviation Directive.

The revised EU ETS Directive entered into force in June 2023. The new rules are intended to raise the overall ambition of emissions reductions in ETS-covered sectors to 62% below 2005 levels by 2030. They aim to support the achievement of the European Union’s legally binding climate objectives under the European Climate Law.

Under the EU’s NDC 3.0 (November 2025) and the amendments to the European Climate Law (February 2026), the launch of ETS2, the second carbon market covering buildings and road transport, was postponed from 2027 to 2028 (Enerdata Global Energy Research).