The first European Union Emissions Trading System (EU ETS1) was established in 2005 to reduce greenhouse gas (GHG) emissions in Europe.

ETS1 covers electricity and heat production, the chemical industry, the manufacture of steel, cement, ceramics, aluminum, glass, and paper pulp, oil refineries and coke plants, aviation, and now maritime transport.

Thus, for each ton of CO2 emitted from their energy consumption, consumers in the subject sectors must surrender an equivalent number of carbon allowances. The system encourages companies to reduce their fossil fuel consumption. As such, companies that emit greenhouse gases must be able to demonstrate that they have a number of allowances equivalent to their emissions. The allowances available on the market (through auctions and free allowances allocated to certain sectors) are reduced each year to force these companies to reduce their GHG emissions.

The European Union will extend this mechanism to other sectors by creating ETS2. This second carbon market aims at reducing CO2 emissions from fuel combustion in buildings, road transport and additional sectors (mainly small industries not covered by the existing ETS1).

This is a mechanism that requires energy suppliers to purchase carbon dioxide (CO2) emission allowances. They will have to surrender an annual quantity of allowances proportional to the amount of CO2 emissions associated with supplying natural gas to their customers. This should provide an incentive for consumers to reduce their CO2 emissions.

This is currently planned for January 1, 2027. This date may still be postponed by the government.

As a business, residential, or professional customer, the cost of CO2 emissions related to your gas consumption will be reflected in your energy bill. This means that you may see an increase in your energy costs.

These costs will be billed to the customer starting January 1, 2027, in accordance with current regulations and will be calculated as follows: volume of natural gas you have consumed (in MWh) x conversion coefficient per ton of CO2 to MWh x CarP.

• The conversion coefficient per ton of CO2 to MWh is determined by the competent authority.
• CarP is determined based on the prices of CO2 emission allowances and our (administrative) costs, which are not yet known.

ENGIE will publish the value of CarP as soon as there is an effective market for CO2 emission allowances. These costs are exclusive of VAT.

You can also find additional information via this link.

Certain actions, sometimes requiring more or less investments, are possible to reduce your company's gas consumption, related CO2 emissions and ETS2 costs, and improve the overall efficiency and sustainability of your business.
Don't hesitate to contact us to discuss:

• Energy audit: identify opportunities for improvement.
• Improve the insulation of equipment and pipes to reduce heat loss.
• Heat recovery: use residual heat from production processes for other energy needs.
• Process optimization: implement energy efficiency measures, such as optimizing equipment settings and regular maintenance.
• Consider using alternative energy sources, such as solar panels.
   

However, you can also minimize this impact by, for example, adopting a few energy-efficient practices, while contributing to a more sustainable future.

Here are some examples of small tips to adapt to your daily life:

• Turn down the heating: the ideal temperature is 19°C during the day. 
• Minimize energy loss: encourage your staff to close the doors of heated rooms and not leave windows open all day, etc.
• Maintain your boiler regularly; it will consume less.