Commission Delegated Decision (EU) 2025/737

Contents

THE EUROPEAN COMMISSION,Having regard to the Treaty on the Functioning of the European Union,Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC^note, and in particular Article 30j thereof,Whereas:

(1)Article 30j(1) of Directive 2003/87/EC provides Member States with the possibility, from 2027, to unilaterally extend the application of the emissions trading system within the Union (‘EU ETS’) for buildings, road transport and additional sectors, to sectors that are not listed in Annex III to Directive 2003/87/EC.

(2)When availing themselves of this possibility, Member States are to take into account in particular the effects on the internal market, potential distortions of competition, the environmental integrity of the emissions trading system and the reliability of the planned monitoring and reporting system.

(3)On 19 December 2024, Finland notified a request to expand the application of the emission trading system for buildings, road transport and additional sectors to a list of sectors not yet covered by Annex III to, or by Chapters II and III of, Directive 2003/87/EC.

(4)The Finnish authorities explained that the inclusion of additional sectors would reduce the administrative burden and ease the reporting and monitoring processes for the regulated entities and the national competent authority. In addition, it would lead to a more uniform pricing of carbon dioxide among the sectors.

(5)In the Commission’s opinion, expanding the scope of the EU ETS beyond the list of activities listed under Annex III to Directive 2003/87/EC, as Finland has requested, would indeed have environmental benefits, and would bring about an administrative simplification for fuel suppliers acting as regulated entities in Finland.

(6)On the basis of the reviewed greenhouse gas emissions data for the years 2016, 2017 and 2018 carried out in 2020, in accordance with Article 4(3) of Regulation (EU) 2018/842 of the European Parliament and of the Council^note, the average total amount of emissions corresponding to the sectors notified by Finland in the context of this request for unilateral extension amounts to 1179206 tCO₂. This amount will be used as a basis for calculating the future amount of additional allowances to be issued as of 2027.

(7)The Commission has assessed the reporting and monitoring methodologies planned by Finland and has concluded that these are reliable and in line with the requirements of Article 30j of Directive 2003/87/EC.

(8)The excise duty system in place in Finland, particularly the distribution infrastructures, does not effectively allow regulated entities to differentiate the end use of fuels between, on the one hand, sectors already covered by Annex III to Directive 2003/87/EC and, on the other hand, the sectors concerned by this extension of scope. To facilitate cost-effective monitoring, reporting and verification of emissions and reduce the administrative burden linked with reporting associated with the scope factor in the annual emissions reports and the monitoring plans, regulated entities should not be required to distinguish the reporting of emissions in sectors concerned by the extension of scope from emissions in sectors already covered by Annex III to Directive 2003/87/EC.

(9)In order to comply with the regular annual cycle for monitoring, reporting and verification of emissions in the new emissions trading system for buildings, road transport and additional sectors, it is appropriate for regulated entities to report verified emissions for the extended scope starting on 1 January 2025, in accordance with Article 30f(2) of Directive 2003/87/EC,

HAS ADOPTED THIS DECISION: