On Thursday, 9 October, the Saeima adopted urgent amendments to the Law on Pollution, which stipulate that fuel and heating operators will be required to gradually reduce greenhouse gas emissions in order to limit climate change.
According to the amendments, companies operating in the fuel and heating material sales sector, such as fuel stations, heat supply companies, and the transport industry, will need to participate in the European Union Emissions Trading System (ETS).
The ETS is the main instrument for combating climate change and reducing greenhouse gas emissions, operating under the “polluter pays” principle. The system sets an overall emissions cap for companies in certain sectors, and the cap is gradually reduced year by year. Each company is allocated a specific number of free emission allowances—one allowance permits the emission of one tonne of CO₂. Companies that emit below their allocated allowance can sell the surplus to companies that exceed their allowance, or save it for future use. Until now, these requirements only applied to major polluters—companies operating in the energy and aviation sector, and energy-intensive industries.
These amendments are necessary to promote reduced emissions in construction, road transport, and other sectors. For this purpose, a separate emissions trading system (ETS2) is to be established, with an EU-wide launch planned for 2027. The amendments are required to transpose the relevant EU directives into national legislation.
The amendments also clarify and supplement the existing ETS regulations for aviation and large polluters, including new conditions for receiving free allowances, opportunities for obtaining additional allowances, conditions for excluding equipment from the ETS, and the expansion of the scope of the system to include shipping companies.
The law is also supplemented with requirements for polluters, provisions on air pollution and climate change policy, requirements for the remediation of contaminated sites, environmental quality standards and implementation programs, as well as other related matters, including hydrogen production.
The amendments will enter into force on the day following their promulgation.
Saeima Press Service