Finland brings action against Commission before EU Court of Justice concerning emissions trading

Finland brings action against Commission before EU Court of Justice concerning emissions trading

On 19 September, Finland brought an action against the European Commission before the Court of Justice of the European Union. In its action, Finland calls on the Court of Justice to repeal part of Commission Delegated Regulation (EU) 2025/1253, which amends Regulation (EU) 2019/1122 on the operation of the Union Registry for the EU Emissions Trading System.

The purpose of the Commission Delegated Regulation in question is to ensure that operators receive credit for unduly surrendered emissions allowances. It is intended for situations in which a certain operator or activity is excluded from emissions trading by judgment of an EU or national court. Such a judgment may result in an operator having, in retrospect, wrongly surrendered part of its emission allowances.

The action challenges the provision of the Delegated Regulation according to which operators will not receive the same number of allowances as they have unduly surrendered. Under the provision contested in the action, the number of allowances to be credited will be determined using a formula that takes into account the evolution of the value of the allowances.

The action finds that the contested provision is contrary to the key provisions and principles of the Emissions Trading Directive. The action also finds that the Commission has exceeded its powers.

Inquiries: Mervi Pere, Senior Ministerial Adviser, Legislative Affairs, tel. +358 295 161 091, Prime Minister's Office and Eleonoora Eilittä, Chief Specialist, tel. +358 295 047 235, Ministry of Economic Affairs and Employment