New ETS Directive Introduced to Union Registry

The Commission has introduced a revised ETS Directive in the context of the Fit for 55 package. The revised Directive presented changes to be considered in the Union Registry (EU). These changes include changing the scope of ETS to cover maritime transport starting from 2024 where operators can enroll in the Registry for ETS compliance; creating a separate emissions trading system for buildings, roads, transport, and other industries by 2027; changing compliance date for operations to surrender allowances; improving market monitoring by amending the integrity and transparency of the carbon market. The revision also introduced new elements such as enabling full fungibility of general and aviation allowances starting in 2025 and prohibiting the transfer of free allocations to non-compliant installations and aircraft operators. The amendment has been submitted to the European Parliament and Council for a two-months scrutiny period where if no objections are raised, the regulation will be published in the Official Journal and enacted by year-end.