The EU's new emissions trading system, ETS 2, covers emissions from buildings, road transport and other sectors, such as fuel use in small industrial installations. It is designed to reduce emissions by 42 % compared to 2005 levels by 2030. Florian Schlennert, Simon Göss and Hendrik Schuldt from Carboneer describe how it works and what companies need to do to comply. Comprehensive monitoring, reporting and verification (MRV) must be implemented at company level and a monitoring plan must be submitted by August 31 of this year. From 2027, when the EU ETS 2 will be fully functional, it is necessary to purchase and transfer emission allowances. Quota pricing can lead to significant cost increases, affecting both operating costs and consumer prices. As prices are determined by supply and demand, they can show considerable volatility, with forecasts ranging from €48 to €340 per t CO2 by 2030. Given these implications, companies should already be putting resources in place to ensure strict compliance. (Florian Schlennert, Simon Göss and Hendrik Schuldt, more at energypost.eu)