by Eurolng.com Staff
Latvia and ETS2: preparing for the launch on 1 January 2027
Key deadlines, auctions and requirements for fuel operators
From 1 January 2027 the European Union will launch ETS2 — the extension of the emissions trading system to buildings, road transport and additional sectors. Latvia is actively preparing fuel and energy operators for the new rules. On 29 September 2026 the Ministry of Climate and Energy (Klimata un enerģētikas ministrija) sent market participants an update on deadlines, auctions and mandatory actions.
1. What is ETS2 and who is affected
ETS2 (EU Emissions Trading System 2) is the emissions allowance trading system for buildings, road transport and a number of additional sectors. Unlike the classic ETS1 (power and industry), obligations under ETS2 fall on fuel and energy operators — those who supply fuel to end users.
For the small-scale LNG, Bio-LNG, diesel, fuel oil and other fuel markets this means that from 2027 the cost of allowances will be built into the final price. Operators must monitor emissions, report and purchase allowances.
2. Key deadlines for operators in Latvia
| Deadline | What needs to be done |
|---|---|
| By 15 November 2026 | Open a holding account (turējuma konts) in the emissions unit registry if you plan to take part in auctions from January 2027 |
| January 2027 | Start of ETS2 allowance auctions on the EEX platform |
| By 26 October 2026, 17:00 | Complete two ministry surveys (ETS2 issues + electronic tool) |
| Already now | If you have an approved monitoring plan and greenhouse gas emissions permit — apply to open an account |
Even if an operator does not plan to buy allowances at auction from January 2027, the ministry recommends opening an account in advance — once the monitoring plan is approved and the greenhouse gas emissions permit has been obtained.
3. Allowance auctions and the EEX platform
ETS2 allowance auctions will start in January 2027. The organiser is European Energy Exchange AG (EEX). Participation is possible:
- directly (by obtaining access to the auction platform);
- through intermediaries (list published on the EEX website).
Key events:
- 6 October 2026, 15:00–16:00 (Latvian time) — EEX and Veyt seminar on the start of auctions and market impact (registration required);
- Recording and presentation of the September EEX and European Commission seminar are already available — recommended reading for operators planning to take part in auctions.
4. How to open an account in the registry
The holding account (turējuma konts) is opened in the Emissions Unit Registry. In Latvia this is handled by the Latvian Environment, Geology and Meteorology Centre (LVĢMC).
Contacts: jelena.lazdane@lvgmc.lv, aiva.pulke@lvgmc.lv
The ministry recommends using the recording and presentation of the 12 May 2026 seminar, as well as the official guide to opening an account on the LVĢMC website.
For operators that already have an approved monitoring plan and emissions permit, opening an account is the next mandatory step.
5. Surveys and the electronic tool
The ministry asks operators to complete two short surveys by 26 October 2026 (17:00):
- On existing and potential ETS2 issues (anonymous). Results will help improve regulation, prepare seminars and guidance.
- On creating an electronic tool for preparing monitoring plans and annual emissions reports. Company name and e-mail are required — for participation in development and testing.
Both surveys together take about 10 minutes. This is a direct feedback channel from the industry to the regulator.
6. What this means for the fuel and ssLNG market
ETS2 directly affects the cost of fuel:
- Allowances will become an additional cost item for operators of diesel, fuel oil, LNG and other fuels.
- Bio-LNG and other low-carbon fuels will gain a relative advantage — provided verified certificates (PoS) are in place.
- Companies that open accounts early, set up monitoring and understand the auctions will reduce operational risk in 2027.
- Formula prices (TTF + premium) may be supplemented by an ETS2 component — buyers and sellers should discuss in advance how allowances will be reflected in contracts.
7. Conclusion
Latvia is systematically preparing the market for the launch of ETS2 on 1 January 2027. The critical deadline for fuel operators is 15 November 2026 (opening a registry account for participation in auctions). Auctions will start in January 2027 on the EEX platform. The ministry is also collecting feedback and preparing an electronic reporting tool. For ssLNG and Bio-LNG market players it is important to build the cost of allowances into pricing and contractual practice in advance.