Date: 2025-07-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Decision (EU) 2025/1405 of 16 July 2025 amending Implementing Decision (EU) 2020/2126 as regards the total quantities of cancelled EU ETS allowances that may be taken into account for certain Member States’ compliance under Regulation (EU) 2018/842 of the European Parliament and of the Council
Executive Summary:
Commission Implementing Decision EU 2025/1405 amends Implementing Decision EU 2020/2126 regarding the total quantities of cancelled EU ETS allowances that certain Member States can use for compliance under Regulation EU 2018/842. This decision is in response to revised percentages notified by Denmark and Luxembourg, and the Netherlands' intention to cancel EU ETS allowances. The decision enters into force twenty days after its publication in the Official Journal of the European Union.
Key Points / Main Content:
* **ETS Flexibility:**
* Certain Member States can have a limited cancellation of EU ETS emission allowances considered for compliance under Article 9 of Regulation EU 2018/842.
* Annex III to Implementing Decision EU 2020/2126 sets out the total quantities that may be used for the ETS flexibility.
* **Revised Percentages:**
* Denmark and Luxembourg notified the Commission of their decision to revise the percentage previously notified for determining the total quantity of ETS flexibility.
* The total quantity of cancelled EU ETS emission allowances for Denmark and Luxembourg's compliance is determined by applying the percentages notified in 2024 to the value of their calculated 2005 greenhouse gas emissions for each year from 2026 to 2030.
* **Netherlands' Intention:**
* The Netherlands notified the Commission of its intention to cancel EU ETS allowances corresponding to 0 of the maximum specified in Annex II to Regulation EU 2018/842.
* This intention is reflected in Annex III to Implementing Decision EU 2020/2126.
* **Amendment:**
* Annex III to Implementing Decision EU 2020/2126 is replaced by the text in the Annex to this Decision.
Impact Analysis:
**Member States (Denmark, Luxembourg, Netherlands, Belgium, Ireland, Malta, Austria, Finland, Sweden)**
*Impact:* Affected by the revised total quantities of cancelled EU ETS allowances that may be taken into account for compliance under Article 9 of Regulation EU 2018/842.
*Action Required:* Review the updated Annex III to Implementing Decision EU 2020/2126 and adjust their compliance strategies accordingly.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
European Commission: An institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Regulation EU 2018/842: Regulation of the European Parliament and of the Council on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action.
EU ETS: The European Union Emissions Trading System, a cornerstone of the EU's climate policy and a key tool for reducing greenhouse gas emissions cost-effectively.
Commission Implementing Decision EU 2020/2126: Commission Implementing Decision on setting out the annual emission allocations of the Member States for the period from 2021 to 2030 pursuant to Regulation EU 2018/842.
Paris Agreement: An international agreement on climate change, adopted in 2015.
Denmark: A country in Europe, and a Member State of the European Union, which notified a revision to its ETS flexibility percentage.
Luxembourg: A country in Europe, and a Member State of the European Union, which notified a revision to its ETS flexibility percentage.
Official Journal EN
of the European Union L series
2025/1405 17.7.2025
COMMISSION IMPLEMENTING DECISION(EU) 2025/1405
of 16 July 2025
amending Implementing Decision (EU) 2020/2126 as regards the total quantities of cancelled EU ETS
allowances that may be taken into account for certain Member States’ compliance under Regulation
(EU) 2018/842 of the European Parliament and of the Council
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding
annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet
commitments under the Paris Agreement and amending Regulation (EU) No 525/2013(1), and in particular Article 4(3)
thereof,
Whereas:
(1) Article 6 of Regulation (EU) 2018/842 provides the possibility for certain Member States to have a limited
cancellation of EU ETS emission allowances taken into account for their compliance under Article 9 of that
Regulation (the ‘ETS flexibility’).
(2) Annex III to Commission Implementing Decision (EU) 2020/2126(2)sets out the total quantities that may be used for
the ETS flexibility pursuant to Article 4(4) of Regulation (EU) 2018/842. The total quantities were determined
applying the percentages that Member States have notified under Article 6(3) of Regulation (EU) 2018/842 to the
values of the calculated 2005 greenhouse gas emissions.
(3) In accordance with Article 6(3), second subparagraph of Regulation (EU) 2018/842, Denmark and Luxembourg
notified the Commission of their decision to revise the percentage previously notified for the purpose of
determining the total quantity of ETS flexibility that they may use for compliance under Article 9 of Regulation
(EU) 2018/842. Therefore, it is necessary to amend the total quantity, indicated in Annex III to Implementing
Decision (EU) 2020/2126, of cancelled EU ETS emission allowances that may be taken into account for compliance
of Denmark and Luxembourg under Article 9 of Regulation (EU) 2018/842.
(4) The total quantities of cancelled EU ETS emission allowances that may be taken into account for the compliance of
Denmark and Luxembourg under Article 9 of Regulation (EU) 2018/842 are determined by applying for each year
in the period 2021-2030 the percentage notified by those Member States to the value of their calculated 2005
greenhouse gas emissions as set out in Annex I to Implementing Decision (EU) 2020/2126. The percentages notified
by Denmark and Luxembourg in 2024, under Article 6(3), second subparagraph of Regulation (EU) 2018/842, are to
be applied to the value of the calculated 2005 greenhouse gas emissions in each of the years 2026 to 2030.
(5) On 20 November 2023, the Netherlands, having sent no notification in 2019 of its intention to make use of the ETS
flexibility, notified the Commission, under Article 6(3b) of Regulation (EU) 2018/842, that it intended to cancel EU
ETS allowances corresponding to 0 % of the maximum specified in Annex II to that Regulation. It is appropriate to
reflect such intention in Annex III to Implementing Decision (EU) 2020/2126.
(6) Implementing Decision (EU) 2020/2126 should therefore be amended accordingly.
(7) The measures provided for in this Decision are in accordance with the opinion of the Climate Change Committee,
(1) OJ L 156 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj.
(2) Commission Implementing Decision (EU) 2020/2126 of 16 December 2020 on setting out the annual emission allocations of the
Member States for the period from 2021 to 2030 pursuant to Regulation (EU) 2018/842 of the European Parliament and of the
Council (OJ L 426, 17.12.2020, p. 58, ELI: http://data.europa.eu/eli/dec_impl/2020/2126/oj).
ELI: http://data.europa.eu/eli/dec_impl/2025/1405/oj 1/3EN
OJ L, 17.7.2025
HAS ADOPTED THIS DECISION:
Article 1
Annex III to Implementing Decision (EU) 2020/2126 is replaced by the text in the Annex to this Decision.
Article 2
This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the
European Union.
Done at Brussels, 16 July 2025.
For the Commission
The President
Ursula VON DER LEYEN
2/3 ELI: http://data.europa.eu/eli/dec_impl/2025/1405/ojEN
OJ L, 17.7.2025
ANNEX
‘ANNEX III
Total quantities following reduction of EU ETS allowances that may be taken into account for certain Member
States’ compliance under Article 9 of Regulation (EU) 2018/842
Member State Total quantity in tonnes of CO equivalent
2
Belgium 15 423 456
Denmark 4 036 809
Ireland 19 075 035
Luxembourg 2 023 237
Malta 510 300
Netherlands 0
Austria 11 398 397
Finland 6 887 972
Sweden 5 187 421’
ELI: http://data.europa.eu/eli/dec_impl/2025/1405/oj 3/3