EU ETS 2 targets the fuel supplier, not the consumer

Europe’s new emission pricing system for road transport, buildings, and small industries is just around the corner, companies and regulators need to move fast to be prepared. Whether a company is included depends on the type of fuel it sells and whether the client’s usage falls within one of the targeted sectors. Downstream purchasers must self-report on usage, and based on that the fuel supplier must assess whether the volumes need to be reported under ETS2. For some small-scale industrial plants, direct inclusion in ETS1 might be an alternative to passthrough cost of ETS2-exposed fuels.