Weakening ETS2 risks slowing Europe’s road-transport decarbonisation path
Brussels, 19 November 2025 – The European Automobile Manufacturers’ Association (ACEA) notes with caution the decision to delay or weaken the introduction of the EU Emissions Trading System for road transport and buildings (ETS2).
The ETS2 is an indispensable market-based instrument for achieving effective and cost-efficient greenhouse gas reductions across all transport modes, including light- and heavy-duty vehicles.
A delayed start of the ETS2, together with several of the modifications currently under discussion, risks undermining its integrity, thereby weakening essential signals that drive investments in zero-emission technologies. The ETS2 complements the CO2 standards regulations for cars/vans and trucks/buses and constitutes a core element of the enabling conditions needed for their achievement.
As such, the delay would seriously endanger the manufacturers’ decarbonisation trajectories and put all the regulatory burden to decarbonise only on respective fleet regulations (the CO2 standards for cars/vans and trucks/buses), leaving vehicle manufacturers as the single stakeholder liable for billions in penalties if the market demand for zero-emission vehicles does not increase rapidly.
“The very programmes that help the transition and support customers in the switch to zero-emission vehicles, for example via social leasing schemes, depend on the revenues from the ETS2 and would then be delayed as well,” stated Sigrid de Vries, ACEA’s Director General.
Instead of diluting the ETS2, the focus should be on ensuring its consistent and socially balanced implementation, including through well-designed compensation mechanisms. As other enabling measures, such as the Energy Taxation Directive and the Weights & Dimensions Directive, remain incomplete, the ETS2 plays an even more pivotal role in the transition to zero-emission transport.
The European Automobile Manufacturers’ Association (ACEA) notes with caution the decision to delay or weaken the introduction of the EU Emissions Trading System for road transport and buildings (ETS2). The ETS2 is an indispensable market-based instrument for achieving effective and cost-efficient greenhouse gas reductions across all transport modes, including light- and heavy-duty vehicles.
Notes for editors
- A report examining the planned introduction of the EU Emissions Trading System for road transport and buildings (ETS 2) can be found here: https://www.acea.auto/news/ets-2-is-essential-to-a-fair-and-effective-transition-new-study-emphasises/
About ACEA
- The European Automobile Manufacturers’ Association (ACEA) represents the 17 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, TRATON GROUP, Volkswagen Group, and Volvo Group.
- Visit www.acea.auto for more information about ACEA, and follow us on https://www.x.com/ACEA_auto or https://www.linkedin.com/company/ACEA/
Contact:
- Camille Lamarque, Media Relations Manager, cl@acea.auto, +32 2 738 73 16
About the EU automobile industry
- 13.6 million Europeans work in the automotive sector
- 8.1% of all manufacturing jobs in the EU
- €414.7 billion in tax revenue for European governments
- €93.9 billion trade surplus for the European Union
- Over 8% of EU GDP generated by the auto industry
- €84.6 billion in R&D spending annually, 34% of EU total
