ETS2 Lab: A Practical Guide to the Monitoring Plan, Compliance, and Carbon Budget
Degree
LSL
Year
2026/2027
The course aims to explore in depth the legal, financial, social, and operational aspects of the sectors regulated by ETS and ETS2, which are already operational or will be implemented between 2025 and 2030, providing skills applicable in both European and national contexts. The ecological transition is changing the rules of the game for businesses.
The course will be held in person on two different dates in October 2026, at the Rome and Milan locations, and will focus on:
DAY 1: REGULATORY FOUNDATIONS, PASS-THROUGH, AND MONITORING
- Introduction and ETS2 regulatory framework Regulatory developments, obligated entities, the role of the ETS2 Committee, deadlines, the relationship with excise duties and taxation, and the penalty regime.
- ETS2 pass-through techniques Methods for passing on the cost of CO2, the impact on bills and fuel supply. Contractual arrangements.
- ETS2 and energy logistics Operational impact on fuel importers and distributors, supply chain governance, and relationships with operators.
- Monitoring and data collection plan Monitoring Plan, data sources, information systems, traceability, data quality, and internal controls
- Operational workshop Developing the Monitoring Plan for a fuel distributor subject to ETS2: flow mapping, data collection, KPIs, and a preliminary report.
DAY 2 MARKET AND TAXATION
- ETS2: Guidelines from the ETS2 Committee and implementation aspects for obligated operators. The role of the ETS2 Committee, implementation challenges, relationships with authorities, use of proceeds, system evolution, and a Q&A session with operators.
- The carbon market and how the cap-and-trade system works: Market structure, how the EUA price is set, drivers of supply and demand, and ETS2 scenarios.
- ETS2 budget and financial simulations Creating the carbon budget, impacts on EBITDA, cash flow, and profit and loss, and price scenarios.
- Market access and allowance purchase strategies Spot, forward, and OTC markets, trading platforms, portfolio management, and hedging strategies.
- Hedging and risk management Hedging instruments, volatility management, operational risk management, and corporate policies.
- Tax, accounting, and fiscal aspects of ETS2 VAT treatment, excise duties, cost deductibility, allowance accounting, and impacts on financial statements.
