The Commission has decided to refer Spain and Poland to the Court of Justice of the European Union for failing to transpose agreed legislation

The European Commission has 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 has also decided to refer Spain and Poland to the Court for failing to transpose the revised Aviation ETS Directive [Directive (EU) 2023/958]. The revised EU ETS legislation is a key element of the EU’s 2030 climate policy framework and the Union’s path towards climate neutrality by 2050. The revised rules strengthen and expand the EU ETS, intensify emissions reductions across all regulated sectors and contribute to the achievement of the EU’s legally binding climate targets under European climate legislation. The full transposition of these Directives therefore ensures the proper functioning of the EU ETS, thereby preventing distortions in the internal market. 

Failure to transpose the revised EU ETS Directive

By 31 December 2023 at the latest, EU Member States were required to transpose the revised EU ETS Directive [Directive (EU) 2023/959], amending Directive 2003/87/EC, which establishes a scheme for greenhouse gas (GHG) emissions trading within the Union. The revision of the EU ETS Directive strengthens the existing EU ETS rules, extends emissions trading to maritime transport, accelerates the reduction of emission allowances, revises the rules on free allocation and strengthens 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 not fully transposed the Directive. On 7 May 2025, the Commission sent reasoned opinions to those Member States. To date, Spain has not notified the measures necessary to fully transpose the revised EU ETS Directive. The Commission therefore considers that, to date, the efforts of the national authorities have been insufficient, and it is therefore preparing to refer Spain to the Court of Justice of the European Union and to request that financial penalties be imposed. 

Failure to transpose the revised EU ETS Directive for aviation

EU Member States were required to transpose, by 31 December 2023 at the latest, the EU ETS Directive for aviation [Directive (EU) 2023/958], amending Directive 2003/87/EC as regards the contribution of aviation to the Union’s economy-wide emission reduction target and the appropriate application of a global market-based measure. The revised aviation ETS rules strengthen the aviation sector’s contribution to the EU’s climate targets 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 not fully transposed the Directive. On 7 May 2025, the Commission sent reasoned opinions. To date, Spain and Poland have still not notified any transposition measures. The Commission considers that, to date, the efforts of the national authorities have been insufficient, and it therefore intends to refer the cases to the Court of Justice of the European Union and to request that financial penalties be imposed. 

Background

The EU ETS is the EU carbon market’s main instrument for reducing GHG emissions in a cost-effective manner. It covers emissions from electricity generation, industry, maritime transport and aviation in Europe. It is a key driver of decarbonisation and has significantly curbed fossil fuel consumption, thereby reducing the Union’s dependence on imports and strengthening its resilience. Furthermore, it has driven significant investment in the transition to clean energy, which has underpinned the expansion of renewable energy and low-carbon energy sources in Europe, thereby enhancing our energy independence.

The revision of the EU ETS forms part of the post-2030 policy framework designed to implement European climate legislation and achieve a reduction of at least 55% in net GHG emissions by 2030 compared to 1990 levels.

For further information: European Commission