Today, the European Commission decided to refer Spain to the Court of Justice of the European Union for failing to transpose the revised EU Emissions Trading System (EU ETS) Directive ( Directive (EU) 2023/959 ) into national law. The Commission also decided to refer Spain and Poland to the Court for failing to transpose the revised ETS aviation Directive ( Directive (EU) 2023/958 ). The revised EU ETS legislation is a key element of the EU's 2030 climate policy framework and of the Union's pathway towards climate neutrality by 2050. The revised rules strengthen and expand the EU ETS, increase emissions reductions across covered sectors, and contribute to the delivery of the EU's legally binding climate targets under the European Climate Law . The complete transposition of these Directives therefore ensures the proper functioning of EU ETS, avoiding distortions in the internal market.
Failure to transpose the revised EU ETS Directive
EU Member States were required to transpose the revised EU ETS Directive (Directive (EU) 2023/959 amending Directive 2003/87/EC ) establishing a system for greenhouse gas (GHG) emission allowance trading within the Union into national law by 31 December 2023. The amending Directive strengthens the existing EU ETS rules, extends emissions trading to maritime transport, accelerates the reduction of emissions allowances, revises the rules on free allocation, and reinforces the Innovation Fund and the Modernisation Fund , which support the transition to a climate-neutral economy.
On 25 January 2024, the Commission sent letters of formal notice to Member States that had failed to fully transpose the Directive. On 7 May 2025, the Commission sent reasoned opinions to the Member States concerned. To date, Spain has not communicated the measures necessary to fully transpose the revised EU ETS Directive. The Commission therefore considers that efforts by the national authorities have, to date, been insufficient and is therefore referring Spain to the Court of Justice of the European Union with request for financial sanctions.
Failure to transpose the revised ETS aviation Directive
EU Member States were required to transpose by 31 December 2023 the ETS aviation Directive (Directive (EU) 2023/958 amending Directive 2003/87/EC) as regards the aviation sector's contribution to the Union's economy-wide emission reduction target and appropriately implementing a global market-based measure. The revised ETS aviation rules strengthen the aviation sector's contribution to EU climate objectives and implement the Carbon Offsetting and Reduction Scheme for International Aviation.
On 25 January 2024, the Commission sent letters of formal notice to Member States that had failed to fully transpose the Directive. On 7 May 2025, the Commission sent reasoned opinions . Spain and Poland have still not communicated any transposition measures. The Commission considers that efforts by the national authorities have, to date, been insufficient and is therefore referring the cases to the Court of Justice of the European Union with requests for financial sanctions.
Background
The EU ETS is the EU's main carbon market instrument for reducing GHG emissions in a cost-effective way. It covers emissions from electricity generation, industry, maritime transport and aviation within Europe. It is a key driver for decarbonisation and has massively reduced fossil fuel consumption, lowering the Union's dependence on imports and strengthening its resilience. In addition, it has driven major investments in the clean energy transition, supporting the development of European renewables and low-carbon energy sources that enhance our energy independence.
The revision of the EU ETS forms part of the post-2030 policy framework designed to implement the European Climate Law and deliver at least a 55% reduction in net GHG emissions by 2030 compared to 1990 levels.
