EC Cancelled EU ETS Allowances

Updated on: Jul 18, 2025

Latest Event


  • Jul. 17, 2025 New Decision in Official Journal
  • On Jul. 17, 2025, EU CMSN issued Dec 2025/1405 of Jul. 16, 2025 amending Dec 2020/2126 as regards the total quantities of cancelled EU ETS allowances that may be taken into account for certain Member States’ compliance under Reg 2018/842.
  • Decision in force on the 20th day after publication in the Official Journal, Aug. 6, 2025.

On Jul. 10, EC issued implementing decision on emission allowances.

  • EC issued implementing decision amending implementing decision 2020/2126, including annex, regarding total quantities of cancelled emission trading system (ETS) allowances that may be considered for member states compliance re Reg 2018/842.
  • Amendments
  • Malta's max percentage of ETS flexibility for 2025-2030 was raised from 2% to 7%.
  • Some member states were granted a new opportunity to notify EC by Dec. 31, 2023 whether they intended to make use or further use of ETS flexibility in 2025-2030.
  • By Dec. 31, 2023 Malta and Sweden notified EC of intended use of the flexibility.
  • Therefore, quantities to be used for ETS flexibility set out in annex III to implementing decision 2020/2126 should be amended for those two member states.
  • Effectiveness
  • The decision enters into force on 20th day following publication in the official journal.
  • Jul. 17, 2025 New Decision in Official Journal
  • On Jul. 17, 2025, EU CMSN issued Dec 2025/1405 of Jul. 16, 2025 amending Dec 2020/2126 as regards the total quantities of cancelled EU ETS allowances that may be taken into account for certain Member States’ compliance under Reg 2018/842.
  • Decision in force on the 20th day after publication in the Official Journal, Aug. 6, 2025.
Regulators
EU CMSN
Entity Types
B/D; Corp
Reference
OJ L, 7/17/2025; Dec 2025/1405, 7/16/2025; Dec C(2024) 4726 final, PR, 7/10/2024; EU ETS; ESG; Citation: Dec 2025/1405; Dec 2020/2126;
Functions
Compliance; Environment; Financial; Legal; Reporting; Risk
Countries
European Union; Malta; Sweden
Category
State
N/A
Products
Commodities; Corporate; Equity
Rule Type
Final
Regions
EMEA
Rule Date
Jul 10, 2024
Effective Date
Aug 6, 2025
Rule ID
219026
Linked to
N/A
Reg. Last Update
Jul 17, 2025
Report Section
EU