ETS2 – early auctioning of allowances

Carbon Market Watch supports the early auctioning of 450 million ETS2 allowances to address a €6.8bn funding gap in the Social Climate Fund for 2027 caused by a one-year delay in the system's start. The organization argues that these revenues should be ringfenced for the Social Climate Fund to help member states implement National Social Climate Plans and protect vulnerable households. Additionally, it supports the requirement that only member states that have transposed the legislation can access auctioning revenues to incentivize timely implementation.

• Carbon Market Watch supports the early auctioning of 450 million ETS2 allowances, arguing it will improve price predictability and generate essential revenues for the Social Climate Fund (SCF) in 2027 to fill a €6.8bn funding gap resulting from a one-year delay in the system's start.
• The organization urges the European Commission and co-legislative bodies to ringfence all revenues from early auctioned allowances specifically for the Social Climate Fund to allow member states to begin implementing National Social Climate Plans.
• Carbon Market Watch endorses the legal clarification that access to ETS2 auctioning revenues is restricted to member states that have transposed the legislation, creating an incentive for proper implementation.
• The document highlights the necessity of the ETS2 due to insufficient emission reductions in specific sectors, noting that CO2 emissions from building energy use have only fallen by 14.7% since 2015 and road transport reductions have stalled.

APA

Carbon Market Watch (2026). ETS2 – early auctioning of allowances. https://carbonmarketwatch.org/wp-content/uploads/2026/01/20260105_CMW-feedback-on-ETS2-early-auctioning.pdf

Chicago

Carbon Market Watch. ETS2 – early auctioning of allowances. 2026. https://carbonmarketwatch.org/wp-content/uploads/2026/01/20260105_CMW-feedback-on-ETS2-early-auctioning.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=ETS2 – early auctioning of allowances |date=January 2026 |url=https://carbonmarketwatch.org/wp-content/uploads/2026/01/20260105_CMW-feedback-on-ETS2-early-auctioning.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2026ets2, author = {{Carbon Market Watch}}, title = {{ETS2 – early auctioning of allowances}}, publisher = {Carbon Market Watch}, year = {2026}, month = jan, url = {https://carbonmarketwatch.org/wp-content/uploads/2026/01/20260105_CMW-feedback-on-ETS2-early-auctioning.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }