ETS2 and business travel: what changes for meetings

ETS2 is the EU's second emissions trading system. It puts a carbon price on the fuels used in road transport and buildings, charged upstream at fuel suppliers, and according to the European Commission it becomes fully operational in 2028. Flights are not part of ETS2, because aviation is already covered by the original EU ETS. For meetings, ETS2 mainly touches car and coach travel and the energy behind venues and hotels, and the most dependable way to limit that cost risk is a location that needs fewer car and flight kilometres.

Below we explain what ETS2 covers and what it does not, what the official sources say about timing today, and what it means for planning meetings and events. We stay with what the EU has published. We do not forecast prices.

Where the hard saving is today

Before any carbon price arrives, meeting travel already has a large, measurable lever: the location. When you choose where to meet from the attendees' origins, travel distance, ticket cost and travel time change at the same time. With the Meeting Place Finder, companies plan meetings with up to 35% lower travel cost and up to 42% less CO2. In our case study with a DAX-listed company, 219 meetings with 5,652 participants saved over EUR 1M in travel spend and avoided about 1,170 t CO2.

That is the context for ETS2. A carbon price on road fuels does not change what a good meeting location is. It adds one more reason to choose it well, because every kilometre you avoid is also a kilometre that cannot become more expensive.

ETS2 explained in brief

The European Commission's ETS2 page (opens in a new tab) (last updated 2 September 2026) describes the system as follows:

• What it covers: CO2 emissions from fuel combustion in buildings, road transport and additional sectors, mainly small industry not covered by the existing EU ETS.

• Who is regulated: fuel suppliers, not end consumers. In the Commission's words, "It will be fuel suppliers, rather than end consumers such as households or car users, that will be required to monitor and report their emissions."

• The cap: the number of allowances is limited and falls over time, so that emissions in these sectors go down.

• Price safeguard: during the first two years of operation, if the allowance price exceeds EUR 45 (in 2020 prices), additional allowances may be released from the ETS2 market stability reserve. This is a supply measure, not a fixed price ceiling.

• Social Climate Fund: financed through the income from ETS2 auctions and 50 million allowances from the existing EU ETS, to support households and transport users who are most affected.

Because fuel suppliers pay for allowances, the cost reaches drivers, coach operators and building owners through the price of fuel and heating, not through a separate bill.

ETS2 timing: what the official sources say today

The timing has changed, so it is worth reading the current wording carefully. According to the European Commission (opens in a new tab):

• Monitoring and reporting of emissions began in 2025.

• "The ETS2 will become fully operational in 2028."

• From 2028, once annual verified emissions are reported, regulated entities have to surrender the matching allowances by 31 May of the following year.

ETS2 was originally planned to start in 2027. The European Parliament's research service explains (opens in a new tab) that the start was moved to 2028 in connection with the amendment of the European Climate Law that set the 2040 climate target. The same briefing notes that several Member States have called for further delays, and that the ETS Directive asks the Commission to review by 2031 whether the ETS2 sectors could be integrated into the EU ETS. The Commission has also proposed targeted adjustments (opens in a new tab) to the ETS2 market stability reserve to support a smoother start.

Our reading as of October 2026: 2028 is the official start, and the details around it are still moving. If ETS2 is part of your budget planning, check the Commission page again before you set figures.

What ETS2 covers for business travel, and what it does not

For a meeting, the effect of ETS2 depends on how people get there and where they stay.

Inside ETS2 (through fuel prices):

• Rental cars, taxis and employees' own cars driven on business trips

• Company cars, since ETS2 prices road fuel regardless of who owns the vehicle

• Coaches and shuttle buses running on fossil fuel

• Heating fuels in buildings, which over time can feed into venue and hotel energy costs

Outside ETS2:

• Flights. Aviation is part of the original EU ETS. According to the Commission (opens in a new tab), free allocation to airlines was reduced step by step, "moving to full auctioning for the sector by 2026." In July 2026, the Commission also proposed a targeted revision of the EU ETS that concerns aviation; it is a proposal, so its outcome is still open (status on the European Parliament's legislative train (opens in a new tab)).

• Electric trains and electric cars. Electricity generation is covered by the existing EU ETS (opens in a new tab), not by ETS2.

So ETS2 does not replace the carbon price on flights. It adds one on road fuel. For meetings, that means both car-heavy and flight-heavy locations carry carbon cost exposure, while locations that most attendees can reach by train carry the least.

What changes for meeting costs

How much ETS2 will add to a litre of fuel depends on the allowance price, which nobody can state with certainty today. What you can state is your exposure: the number of road kilometres in fossil-fuelled vehicles and the number of flight kilometres your meetings create. Both depend heavily on where you meet.

Take a hypothetical meeting with 80 attendees from 6 cities. If it is held at a rural venue that most people reach by car, almost every attendee contributes road kilometres priced under ETS2. If it is held in a city that the largest groups reach by direct train, many of those kilometres move to rail, and the rest of the journeys get shorter. The agenda, the attendees and the date stay the same. Only the location changes, and with it the carbon cost exposure, the ticket cost and the travel time.

That is why location choice is a better answer to ETS2 than a surcharge in the budget. It lowers today's travel cost and reduces the base on which any future carbon price is charged.

How to plan meetings with ETS2 in mind

1. Collect origins with head counts: cities, postcodes or airports, no names needed.

2. Compare every candidate city: travel cost, CO2 and travel time, door to door, across all modes.

3. Check rail reachability: locations that the largest groups can reach by train lower both CO2 and exposure to fuel prices.

4. Compare dates: routes and fares differ by date, so look at up to three options.

5. Apply your travel policy: travel classes and negotiated rates change the result and belong in the calculation.

6. Document the decision: a savings report for purchasing shows the chosen location against the benchmark.

7. Review ETS2 once a year: check the Commission page for timing and price measures before you plan the next budget.

The Meeting Place Finder handles steps 1 to 6 for you. It ranks every candidate city by travel cost, CO2 and travel time, compares up to three dates (each date is its own calculation), and shows the result in three views: maximum productivity, minimum CO2 and lowest ticket cost. You can see how it works or read how we measure the emissions side in Scope 3 category 6: measuring the CO2 of meeting travel. For companies with climate targets, SBTi targets and meeting travel covers the target side. If you want to put a figure on travel cost first, start with how to calculate the travel cost of a meeting.

FAQ

When does ETS2 start?

According to the European Commission, ETS2 becomes fully operational in 2028. Monitoring and reporting began in 2025. The original start in 2027 was postponed by one year.

Does ETS2 make flights more expensive?

Flights are not part of ETS2. Flights within the European Economic Area are covered by the original EU ETS, where free allocation to airlines was phased out towards full auctioning by 2026.

Who pays for ETS2?

Fuel suppliers monitor emissions and surrender allowances. The cost is expected to reach consumers through fuel and heating prices, not through a separate charge for travellers.

Is there a price cap in ETS2?

There is no fixed cap. During the first two years, if the price exceeds EUR 45 (in 2020 prices), additional allowances may be released from the market stability reserve.

Does ETS2 apply to company cars?

Yes, indirectly. ETS2 prices the fuel used in road transport, so it reaches company cars, rental cars and private cars through the price at the pump.

To see where your next meeting is cheapest, cleanest and quickest to reach, request a free trial for one of your meetings, or book a demo and we will look at it together.