Estonia to move for postponing ETS2 regulation

The Ministry of Climate is set to begin negotiations with European Union member states to postpone the implementation of the second emissions trading system (ETS2) for building and road transport fuels. Additionally, Estonia is prepared to seek the cancellation of ETS2 altogether.
Climate Minister Yoko Alender (Reform) stated that Estonia supports the European Union's climate goals but emphasizes the importance of ensuring that new measures take into account the economic and social realities of each member state. She added that when the directive was approved, the full impact of the war was not yet well understood.
"Estonia aims to reduce greenhouse gas emissions and move toward climate neutrality, but we must do so with effective measures that do not place households and businesses under disproportionately high pressure, especially given today's security situation," Alender said.
The minister added that before implementing the system in the building and transport sectors, the government wants to reassess existing investments and support measures to mitigate potential price increases and ensure that people and businesses have sufficient alternatives. This includes adopting energy-efficient solutions and improving access to sustainable transportation options.
"Implementing ETS2 would help us reduce emissions by less than 0.1 percent. Instead, we should direct investments toward developing public transport and improving connections between major cities and surrounding municipalities," the minister stated.
The aim of ETS2 is to reduce greenhouse gas emissions in the building and road transport sectors, but its implementation has proven complex and economically burdensome. Nearly half of EU member states, including Estonia, have not yet adopted the directive, as they have struggled to find viable solutions with lower administrative burdens.
The Czech Republic and Poland have initiated discussions at the EU level to postpone ETS2 implementation. Any amendment to the directive would require a proposal from the European Commission and the support of a majority of member states for approval.
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Editor: Mari Peegel, Marcus Turovski