EU ETS: changes to legislation on the European Emissions Trading System

On 9 December 2024, Decree-Law 101/2024 of 4 December 2024 came into force, partially transposing Directive (EU) 2023/959, the latest amendment to the European Emissions Trading Directive (Directive 2003/87/EC).

The European Emissions Trading Scheme (EU ETS) is the European Union's (EU) main instrument for meeting international commitments to reduce greenhouse gas (GHG) emissions. Its primary objective is to discourage the use of carbon-intensive technologies, particularly in activities covered by the scheme, and to encourage their transition to cleaner technologies. This objective is achieved, among other things, by setting a cap on GHG emissions at EU level. This cap will be progressively reduced until carbon neutrality is achieved, at which point the potential for carbon emissions across the EU will be significantly lower, taking into account the maintenance of the net zero situation.