EU ETS2
From 2027, regulated entities will have to report their emissions in the Union registry as part of ETS2. This means that these entities must open a regulated entity holding account by submitting an application to the Swedish Energy Agency from 30 June 2026.
Regulated entities are actors that release fuel for consumption on the market. This means that in most cases it is not the end consumers who are required to report under ETS2.
Not all emissions in the EU are included in the EU ETS or ETS2. Some sectors are standard across the EU, while others are individually selected by Member States. The following are included by Sweden in ETS2:
- road transport
- energy industry
- buildings
- manufacturing and construction industry
- commercial/public premises
- fishing, agriculture, forestry and aquaculture
- rail transport
- domestic shipping (recreational vessels only)
- ports and airports (work machinery)
The activities and fuels covered by ETS2 are regulated in Act (2020:1173) and Regulation (2020:1180) on certain greenhouse gas emissions.
The ETS2 will be introduced in stages, starting with the operators reporting their emissions to the Swedish Environmental Protection Agency in 2026 so that the European Commission can set an emissions cap by 2027. From the 30th of June 2026 and onwards, operators will be able to open accounts in the Union Registry.
ETS2 is a trading system separate from the EU ETS (ETS1), and therefore has a separate emissions cap and its own emission allowances. The emission allowances for ETS2 are referred to as emission allowances for regulated entities. Operators in ETS2 cannot use EU ETS allowances to fulfil their compliance obligations. Likewise, operators in EU ETS1 will not be able to hold emission allowances for regulated entities in their operator holding accounts in the Union Registry.
Timeline for implementation of ETS2
2024: Application for permit for operators subject to permit requirements to the Swedish Environmental Protection Agency. Monitoring of emissions begins.
2025: Emissions reports for 2024 must be submitted to the Swedish Environmental Protection Agency by 30 April. No requirement for verified emissions reports.
2026: A verified emissions report for 2025 must be submitted to the Swedish Environmental Protection Agency by 30 April. Applications to open an account in the Union registry with the Swedish Energy Agency can be made from 30 June.
2027: A verified emissions report for 2026 must be submitted to the Swedish Environmental Protection Agency by 30 April. Emissions must be recorded in the Union registry by 30 April at the latest. Auctioning for regulated units starts on 1 January.
2028: A verified emissions report for 2027 must be submitted to the Swedish Environmental Protection Agency by 30 April. Emissions must be recorded in the Union Registry by 30 April. Surrendering of emission allowances corresponding to 2027 emissions must be done in the Union Registry by 31 May.
ETS2: buildings, road transport and additional sectors (europa.eu)
