The Commission has adopted a decision setting the EU-wide quantity of allowances issued under the EU Emissions Trading System for buildings, road transport and small industry (ETS2) for 2027. This cap will amount to 1,036,288,784 allowances in 2027 and will contribute to the EU reaching its 2030 climate targets.

The calculation of the cap for 2027 is based on the average CO2 emissions from fuel combustion in the ETS2 sectors during the years 2016 to 2018. This average is reduced by 2027 as follows:

Firstly, by 2024 through a linear reduction trajectory based on all emissions within the scope of the Effort Sharing Regulation.

Secondly, for the years 2025-2027, through an annual linear reduction factor of 5.1 % in accordance with Article 30c(1) of the ETS Directive.

The ETS2 cap for 2027 includes the European Economic Area and European Free Trade Association (EEA-EFTA) countries.

The ETS2 cap for 2028 will be determined later, based on the average CO2 emissions reported by entities regulated under ETS2 for the years 2024 to 2026.

The decision, which will soon be published in the Official Journal, fulfils the Commission's obligation under the ETS Directive to publish the Union-wide quantity of allowances for 2027 by 1 January 2025. Spring