ETS2 as an Opportunity: Turn Compliance into Competitive Advantage

The upcoming launch of ETS2 in 2027—introducing carbon pricing for fuels used in buildings, transport, and small industry—can easily be construed as an expensive compliance challenge. ETS2 will place responsibility for the emissions directly in the hands of the upstream fuel supply chain: the companies placing fuels on the EU market. And yes, it does require your company’s participation. But for fast-acting and forward-thinking businesses, it’s much more than that. Let’s talk about how you can make these regulations work to your strategic advantage. 

ETS2 is a market signal: a clear nudge for the fuel supply chain to work on instilling smarter operations, more efficiency, and low-carbon innovation. Businesses that respond early and strategically won’t just stay compliant and avoid costly risks—they’ll position themselves ahead of the curve with a clear and competitive advantage. They’ll turn regulatory pressure into strategic investments that will give them long-term benefits—regarding their reputation, operations and finances.  

Taking a proactive approach to ETS2 doesn't only help you avoid unfortunate operational and financial challenges and risks. If done right, it's a great opportunity to gain new control of your carbon costs, cut down on emissions, explore low-carbon alternatives. 

1. Cut emissions, cut costs 

Let’s start with operational and energy efficiency. By, for example, optimizing heating systems, improving insulation, and refining fleet logistics, you can reduce your fuel use in a very tangible way. This is great news for the environment, but will also translate into the amount of carbon allowances you’ll have to purchase under ETS2—creating a lasting and impactful change while also lowering your costs long-term. 

2. Explore low-carbon alternatives

Switching to electric vehicles or adopting renewable heating fuels like biomethane can significantly reduce your exposure to rising carbon prices. Investing in cleaner alternatives now positions your business to thrive in the low-carbon economy we are headed towards.   

3. Get control of your carbon costs

By preparing now, you’re preventing future carbon costs from catching you off guard. Model your potential ETS2 liability and incorporate it into your financial planning. Whether you’re budgeting for carbon allowances or exploring cost pass-throughs—early insight enables better-informed decisions. It also gives you time to explore different mitigation strategies, it assesses financial impact scenarios, and it strengthens your internal governance around carbon pricing. 

4. Use sustainability as a market advantage

Taking early, visible action on ETS2 shows stakeholders that you’re not just compliant—you’re committed to sustainability, proactive and future-ready. Leveraging your efforts to lower emissions and improve reporting in your client communication will strengthen your brand and build trust with investors, partners, and regulators. 

Get ahead of ETS2 now by working with the right partners. Whether you're looking into energy procurement options, sourcing renewable fuels like biomethane, or seeking strategic advisory support—early engagement with experienced solution providers, like ACT, is key. 

At the same time—if you’re not tracking your emission data yet, or if you’re not compliant with the ETS2’s monitoring, reporting and verification (MRV) system yet—this is the time to start. The more accurate and granular your insights, the more informed your future decisions will be.