European Parliament Delays ETS 2 Implementation to 2028, Impacting Transport Costs
The European Parliament has postponed the ETS 2 carbon market implementation to 2028, which is expected to increase transport costs and accelerate the decarbonization strategy for shippers. The ETS 2, covering emissions from buildings and road transport, will require fuel suppliers to purchase emission allowances. This cost will be reflected in fuel prices for transporters. The European Commission plans to regulate CO₂ prices between 2028 and 2030, aiming for a cap at €45/MWh, potentially increasing diesel prices by 15 cents per liter.
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The European Parliament has confirmed the postponement of the ETS 2 carbon market to 2028. Initially set for 2027, this revision, part of the European climate law aimed at reducing greenhouse gas emissions by 90% by 2040, includes emission allowances for buildings and road transport.
Fuel suppliers will need to purchase these allowances, with the costs passed on to transporters through fuel price adjustments. Consequently, transport costs are expected to rise starting in 2028. The European Commission's regulatory mechanism between 2028 and 2030 aims to cap CO₂ prices at €45/MWh, which could raise diesel prices by approximately 15 cents per liter. After 2030, the evolving carbon value in ETS 2 may significantly influence fossil fuel-based road transport costs.
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