The European Energy Exchange (EEX), in collaboration with IncubEx, announced it will introduce new futures contracts linked to the European Union’s second Emissions Trading System (EU ETS2) on 7 July 2025, pending regulatory approval. This move marks a significant expansion of carbon trading options ahead of the full operational start of the EU ETS2 in 2027.
The initial offering will include futures contracts with December and April maturities covering the first three years of the new system. The earliest available expiry will be December 2027, with additional maturities to be introduced progressively. The contracts will be accessible via both order book trading and trade registration.
Peter Reitz, CEO of EEX, emphasized the exchange’s pioneering role:
“With the new contracts, we are the first exchange to offer efficient trading instruments to hedge price exposure already for the December 2027 maturity. We have been supporting the EU’s decarbonisation journey for the past 20 years and continue to facilitate these efforts through market-based tools. With the new suite of products, we will offer clear price signals for carbon emissions, enabling companies to gradually phase-in more sustainable operations.”
Dan Scarbrough, President and COO of IncubEx, also highlighted the significance of the launch:
“The EU ETS2 marks a major step forward in the EU’s ongoing efforts to use market-based solutions to address carbon emissions. EU ETS2 Futures, like EUA Futures, offer transparency, capital efficiencies, and risk management tools that complement the goals of the program. We’re pleased to work with EEX on bringing this important product to market.”
About EU ETS2
The EU ETS2 is a landmark extension of the original EU ETS, set to become fully operational in January 2027. It will expand carbon pricing mechanisms to cover buildings, road transport, and other sectors not currently included under EU ETS1. All allowances under the new scheme will be auctioned from the outset, aligning with the principle of full cost exposure to drive emissions reductions. Companies currently regulated under Germany’s national ETS (nEHS) will also transition into the EU ETS2 framework.
Since the EU ETS’s launch in 2005, emissions from covered sectors have declined by roughly 50%, according to the European Commission. The system has also generated more than €216 billion through allowance auctions, funding initiatives like the Innovation Fund, Modernisation Fund, and the Social Climate Fund to support Europe’s green transition.
EEX currently serves as the auction platform for EUA allowances in collaboration with the European Commission, EU Member States, and the EEA EFTA States. It also operates specific auctions for Germany, Poland, and Northern Ireland, and is the designated sales platform for Germany’s nEHS.
With the addition of EU ETS2 futures, EEX further strengthens its position as a leading venue for environmental markets, helping companies manage carbon price risk while advancing the EU’s ambitious decarbonization targets.