HomeLegislationEU ETS revision

EU ETS revision

COM(2026) 616 final, 2026/0212 (COD)

Direction
20 burden · 31 benefit
Status
51 proposed
Channel
26 direct · 2 reached · 23 no sector
reached via regulatory dependency 2

The platform holds 51 measures for EU ETS revision: 20 imposing a burden, 31 conferring a benefit. Of these, 51 from proposals; 26 arrive directly, 2 through a channel, 23 apply by size or activity rather than by sector.

Reach

Names 8 sectors, reaches 11

EU ETS revision names 8 sectors; 3 more are — aluminium and metals, cement and concrete, power and heat — reached without being named, through CBAM Regulation.

AviationConstructionCarbon capture and fuelsChemicals and refiningWind, heat pumps, hydrogenShippingSteelWaste and landfill

Aluminium and metals — reached by 2 measures, via another act · through CBAM Regulation

Cement and concrete — reached by 2 measures, via another act · through CBAM Regulation

Power and heat — reached by 2 measures, via another act · through CBAM Regulation

Connections

This file in the graph

Every line is an edge in the platform's knowledge graph — acts this file amends or its measures cite, and the sectors those measures apply to. Counts are computed at build time and checked against the graph.

Carbon Removals Certification FrameworkCarbon Removals Certifica…2 measures cite itCBAM RegulationCBAM Regulation1 measure cites itAviationAviationnamed by 10 measuresShippingShippingnamed by 8 measuresWasteWastenamed by 8 measuresCarbon capture and storageCarbon capture and storagenamed by 7 measuresChemicalsChemicalsnamed by 2 measuresreached by 2 measuresSteelSteelnamed by 2 measuresreached by 2 measuresAluminiumAluminiumreached by 2 measuresCementCementreached by 2 measuresConstructionConstructionnamed by 2 measuresPowerPowerreached by 2 measuresEU ETS revision51 measures
Amends (2)Cites (7)Sectors (11)

7 measures

Aviation

AVI-01Aircraft operators can apply annually for free allowances covering 30-100% of the price differential between fossil kerosene and eligible sustainable aviation fuels (with a new electricity category from 1 January 2027), plus long-term contract reservations and a contrail-reduction bonus of up to 0.12% of verified emissions.Aircraft operators using sustainable aviation fuel or electricity · BusinessesArt. 1(3)(a), replacing Art. 3c(6) of Directive 2003/87/EC · 2024-2040OpportunityAVI-02A further 110 million allowances (on top of the existing Art. 3c(6) reserve) are set aside until 2040 to fund sustainable-aviation-fuel and electricity price-differential support for aircraft operators, becoming available for all EEA-departing flights from 1 January 2029.Aircraft operators · BusinessesArt. 1(31)(d), inserting paragraph 6 in Art. 28a of Directive 2003/87/EC · until 31 December 2040OpportunityAVI-03Aircraft operators temporarily face surrender obligations on nearly all non-EEA international flights during 2027-2028 (with a small-emitter carve-out below 10,000 tonnes/year), before scope narrows from 2029-2032 to only long-haul flights over 5,000 km from Frankfurt.Aircraft operators flying to/from non-EEA states · BusinessesArt. 1(31)(a)(II), inserting point (d) in Art. 28a(1) of Directive 2003/87/EC · 1 January 2027 to 31 December 2028, then narrowed 2029-2032RequirementAVI-04Surrender allowances under Art. 12(3) for emissions from flights to or from listed LDC/SIDS states.Aircraft operators flying to/from listed LDC/SIDS states · BusinessesArt. 1(29)(a), replacing Art. 25a(4) of Directive 2003/87/EC · until 31 December 2035SimplificationETSB-AVI-06Comply with the surrender, monitoring, reporting and registry requirements of the EU ETS for emissions from flights between an aerodrome in an outermost region and another aerodrome in the same Member State.Aircraft operators on flights between an outermost region and the same Member State · BusinessesArt. 1(3)(b), amending Art. 3c(8) of Directive 2003/87/EC · emissions released until 31 December 2035SimplificationETSSVC-01Third countries that introduce their own absolute-cap carbon pricing for aviation/maritime emissions (with EU technical/administrative support under 'ETS as a service') receive the full auction revenue generated from the EU-side allowances covering the corresponding share of those emissions.Third countries introducing linked-style emissions pricing for aviation/maritime with EU support · GovernmentsArt. 1(30), inserting Art. 25b of Directive 2003/87/EC · aviation from reporting year 2027 at the earliestOpportunityETSB-MRV-02Aircraft operators must cancel their notified quantity of CORSIA-eligible units by fixed statutory deadlines for each CORSIA compliance periodAircraft operators subject to CORSIA offsetting · BusinessesProposal Art.1(22)(e) replacing Directive 2003/87/EC Art.12(9) · By 31 January 2025, 2028, 2031, 2034 and 2037 for successive …Requirement

7 measures

Carbon capture and fuels

SCP-02CO2 transport infrastructure becomes a regulated 'installation' under the EU ETS, bringing its operator fully into the permitting, monitoring, reporting, verification and surrender regime.Operators of CO2 transport infrastructure (e.g. pipelines) · BusinessesArt. 1(2)(a), replacing Art. 3(e) of Directive 2003/87/EC · from 1 January 2031, per Art. 3RequirementMRV-01Competent authorities of the Member State where CO2 is captured (or the first Member State of transit) must approve monitoring plans and verify emission reports for CO2 transport infrastructure, exchanging information with transit/reception Member States.Operators of CO2 transport infrastructure / Member State competent authorities · BusinessesArt. 1(11), inserting Art. 6a of Directive 2003/87/EC · from 1 January 2031RequirementFND-02The Commission will use proceeds from auctioning 250 million (plus up to 10 million top-up) earmarked allowances (2031-2040) to purchase certified domestic permanent carbon removal units from BioCCS and DACCS projects, paying on delivery of certified units and prioritising cost-effective, high-integrity projects.Operators of BioCCS and DACCS carbon removal projects · BusinessesArt. 1(13), inserting Art. 9c of Directive 2003/87/EC · 2031-2040OpportunityFND-03Grants and other support (e.g. blended finance) from the Innovation Fund, financed by auctioning 200 million allowances from reduced free allocation, are available via open competitive calls for projects scaling up low-/zero-carbon and carbon-negative products, processes and technologies across all Member States.Businesses/projects in sectors listed in Annex I and III, including CCU, CCS, DACCS, maritime/aviation decarbonisation and clean-technology manufacturing · BusinessesArt. 1(17), inserting Art. 10cb of Directive 2003/87/EC · ongoingOpportunityCCS-01Surrender allowances for emissions that are captured and transported for permanent storage in a permitted facility.Operators capturing and permanently storing CO2 emissions · BusinessesArt. 1(22)(c), replacing Art. 12(3a) of Directive 2003/87/EC · third-country reciprocity from 2031SimplificationCCS-02Surrender allowances for CO2 captured and utilised so as to become permanently chemically bound in a product.Operators using carbon capture and utilisation (CCU) technology · BusinessesArt. 1(22)(d), replacing Art. 12(3b) of Directive 2003/87/ECSimplificationCCS-03Operators, aircraft operators and shipping companies will be able to offset their fossil CO2 emissions using their own certified domestic permanent carbon removal units (from storage of biogenic emissions), reducing the number of allowances they must surrender.Operators, aircraft operators and shipping companies generating certified permanent carbon removal units · BusinessesArt. 1(24)(b), inserting Art. 14(1a) of Directive 2003/87/ECEntitlement

6 measures

Waste and landfill

FND-04The Industrial Decarbonisation Bank funds capital investment (including grid connection, storage and flexibility costs) and operating expenditure for emission reductions/removals at industrial installations, financed by 400 million allowances (2028-2030) plus a further 400 million (2031-2040), with a reserved share for lower-GDP Member States.Operators of stationary industrial installations (including waste incineration) carrying out or substituting Annex I industrial production processes · BusinessesArt. 1(17), inserting Art. 10cc of Directive 2003/87/EC · from 2028OpportunityWST-01Waste incineration and co-incineration installations enter the EU ETS from 2031, with surrender obligations phased in gradually: 25% of verified emissions in 2031, rising to 50% (2032), 75% (2033), and 100% from 2034.Waste incineration and waste co-incineration installation operators · BusinessesArt. 1(23), inserting Art. 12a of Directive 2003/87/EC · 2031-2034 phase-in, full scope from 2034RequirementWST-02Surrender allowances for emissions from waste incineration and co-incineration installations in outermost regions.Waste incineration and waste co-incineration installations in outermost regions · BusinessesArt. 1(23), inserting Art. 12a, second paragraph of Directive 2003/87/EC · until 31 December 2035SimplificationWST-03Surrender allowances for the emissions of a given reference year from waste incineration and co-incineration installations.Waste incineration and co-incineration installations in qualifying Member States · BusinessesArt. 1(23), inserting Art. 12b(1) of Directive 2003/87/EC · up to 2035SimplificationMST-05A Member State seeking the waste-incineration opt-out must notify the Commission by 31 July 2029 with evidence of eligibility and indicate the amount of allowances it will cancel from its own auction quota.Member States seeking the waste incineration opt-out · GovernmentsArt. 1(23), inserting Art. 12b(3) of Directive 2003/87/EC · notification by 31 July 2029RequirementMRV-02Even where a waste incineration installation is granted the surrender opt-out, it must still fully comply with the standard EU ETS monitoring, reporting, verification and accreditation obligations.Waste incineration/co-incineration installations benefiting from the Art. 12b opt-out · BusinessesArt. 1(23), inserting Art. 12b(6) of Directive 2003/87/EC · up to 2035Requirement

4 measures

Shipping

SHIP-01Shipping companies can apply annually for free allowances (from a 110 million allowance reserve, 2028-2040) to cover 55-90% of the price differential between fossil marine fuel and sustainable maritime fuels, or 90% of the extra cost of zero-emission propulsion technology, with bonus percentage points for EU-sourced feedstock, EU-built propulsion technology, and island voyages.Shipping companies using sustainable maritime fuels or zero-emission propulsion technologies · BusinessesArt. 1(5), inserting Art. 3gaa of Directive 2003/87/EC · 2028-2040OpportunitySHIP-020.9 million allowances per year (until 2035) are set aside to fund maritime-sector decarbonisation projects in least developed countries and small island developing states.Least developed countries and small island developing states (maritime sector) · GovernmentsArt. 1(6), inserting Art. 3gab of Directive 2003/87/EC · annually until 2035OpportunitySHIP-03Surrender allowances equal to full verified emissions from long inbound voyages, including the transhipped share.Shipping companies operating containerships of 10,000 TEU and above · BusinessesArt. 1(22)(a)(ii), inserting Art. 12(3-g) of Directive 2003/87/EC · until 31 December 2035SimplificationSHIP-04Surrender allowances for containers transhipped via listed neighbouring non-EU ports, once the temporary exclusion lapses.Shipping companies performing container transhipment via listed neighbouring ports · BusinessesArt. 1(4)(c)(i), amending Art. 3ga(3) of Directive 2003/87/EC · until 31 December 2038Simplification

2 measures

Steel

MST-02Member States must earmark at least 50% of their ETS auction revenue (excluding indirect-cost compensation) for a defined list of decarbonisation priority purposes (clean energy/grids, industrial decarbonisation, maritime/aviation decarbonisation, modal shift, municipal waste hierarchy measures, circularity, lead markets for low-carbon products, R&D).Member States · GovernmentsArt. 1(14)(c), replacing Art. 10(3) of Directive 2003/87/ECRequirementFND-08ETS-sector businesses become eligible recipients of Member-State-channelled ETS auction revenue for decarbonisation investment support across a defined menu of purposes: topping up EU-level support mechanisms, clean energy/grid buildout around industrial clusters, industrial decarbonisation (electrification, CCUS, CO2 transport network), maritime and aviation decarbonisation, modal shift, municipal waste hierarchy measures, circularity, and lead markets for low-carbon products such as green steel.Businesses in ETS sectors (industrial, maritime, aviation) and waste management authorities · BusinessesArt. 1(14)(c), replacing Art. 10(3) of Directive 2003/87/ECOpportunity

25 measures

No sector named — applies by size or activity

SCP-01Member State must offer an operator whose installation falls below the 20MW combustion threshold (after reducing emissions via process changes) the option to remain voluntarily in the EU ETS for up to two further five-year allocation periods.Member States (competent authorities) / operators of installations falling below the 20MW threshold · GovernmentsArt. 1(1), replacing the first subparagraph of Art. 2(1) of Directive 2003/87/EC · applies from 1 January 2029RequirementPRM-01If a GHG emissions permit is granted for the first time, withdrawn, and re-granted within the same five-year free-allocation period, the installation is barred from re-entering the EU ETS until the following five-year period.Installations whose permit is withdrawn and re-granted mid five-year period · BusinessesArt. 1(9), inserting Art. 6(4) of Directive 2003/87/EC · applies from 1 January 2028RequirementFRE-01Operators applying for free allocation must establish, publish and submit an 'Invest in EU decarbonisation plan' committing to decarbonisation investments equal to the value of 100% of their free allocation for the relevant five-year period.Operators applying for free allocation · BusinessesArt. 1(15)(d), inserting Art. 10a(3b) of Directive 2003/87/EC · from 30 September 2029, applying to the five-year period star…RequirementFRE-02Free allocation is split into tranches: 80% is paid annually once the decarbonisation plan is verified and approved; the remaining 20% is withheld until the competent authority confirms, within two years after the five-year period, that the required investments were actually implemented and delivered significant emissions reductions.Operators applying for free allocation · BusinessesArt. 1(15)(d), inserting Art. 10a(3c), first subparagraph of Directive 2003/87/EC · from 30 September 2029, applying to the five-year period star…RequirementFRE-03If a free-allocation recipient relocates or transfers its production/economic activity outside the EU, the Member State must claw back (or deduct from future allocations) the free allowances already received for that period.Operators who relocate production outside the EU after receiving free allocation · BusinessesArt. 1(15)(d), inserting Art. 10a(3c), second subparagraph of Directive 2003/87/EC · from 2031RequirementFRE-04Draw up an Invest in EU decarbonisation plan and pass the additional verification gating the final 20% tranche of free allocation.Operators with an installation-level project already awarded IDB/Investment Booster/Innovation Fund support · BusinessesArt. 1(15)(d), inserting Art. 10a(3c), fourth subparagraph of Directive 2003/87/EC · from 2031SimplificationFRE-05Draw up an Invest in EU decarbonisation plan and satisfy the 80/20 tranching conditionality attached to free allocation.Top-10%-most-efficient, zero-/low-carbon, and voluntarily-remaining installations · BusinessesArt. 1(15)(d), inserting Art. 10a(3c), sixth subparagraph of Directive 2003/87/EC · from 2031SimplificationFRE-06Operators may pool multiple installations under a joint decarbonisation investment agreement to satisfy the mandatory decarbonisation-investment volume jointly rather than installation-by-installation.Operators of installations applying for free allocation · BusinessesArt. 1(15)(d), inserting Art. 10a(3d) of Directive 2003/87/EC · from 2031EntitlementFRE-07Installations that received more free allowances than they were entitled to under the free allocation rules must return the excess to the competent authority, which instructs the registry to transfer them back.Operators who received excess free allocation · BusinessesArt. 1(15)(e), inserting Art. 10a(3f) of Directive 2003/87/EC · applies from 1 January 2028RequirementFRE-08The carbon-leakage sector/subsector determination governing eligibility for maximum free allocation now runs through 2040 instead of expiring in 2030, extending continued free-allocation eligibility for exposed sectors by a decade.Sectors and subsectors deemed exposed to carbon leakage risk · BusinessesArt. 1(16)(a), amending Art. 10b(1) of Directive 2003/87/ECOpportunityFRE-09District heating installations get a slower phase-out of free allocation, reaching zero only in 2040 instead of 2030 as applies to other 'other sectors'.District heating installations · BusinessesArt. 1(16)(b), replacing Art. 10b(4), first subparagraph of Directive 2003/87/EC · 2031-2040OpportunityETSB-ALC-05Sectors and subsectors not deemed exposed to carbon leakage are cut to 30% of the Article 10a free-allocation quantity, and that residue is phased out in equal annual steps after 2026 to reach zero in 2030.Operators in sectors and subsectors considered able to pass on allowance costs in product prices (all 'other sectors' except district heating) · BusinessesArt. 1(16)(b), replacing Art. 10b(4), first subparagraph of Directive 2003/87/EC · decreasing after 2026, reaching zero in 2030Support cutCBAM-01Producers of CBAM-covered goods see their free allocation shrink on a fixed annual CBAM-factor schedule, falling to 0% from 2038, as CBAM replaces free allocation as the carbon-leakage instrument for those goods.Operators of installations producing goods covered by the Carbon Border Adjustment Mechanism · BusinessesArt. 1(15)(b)(i), replacing Art. 10a(1a), second subparagraph of Directive 2003/87/EC · 2026-2038, applies from 30 September 2027SimplificationCBAM-02When new product categories are added to the CBAM goods list, their free allocation also starts phasing down on a set CBAM-factor schedule (97.9% then 95.8%, then the general schedule from 2028).Operators producing goods newly added to CBAM Annex I · BusinessesArt. 1(15)(b)(ii), inserting a subparagraph after Art. 10a(1a), second subparagraph of Directive 2003/87/EC · from the next five-year period following inclusion in CBAM An…SimplificationFND-01The Union will fund and operate a facility purchasing up to 260 Mt of high-quality international carbon credits (2036-2040) that count toward ETS sectors' climate ambition, easing reliance on domestic abatement alone.Operators, aircraft operators and shipping companies covered by Annex I activities · BusinessesArt. 1(13), inserting Art. 9b of Directive 2003/87/EC · 2036-2040OpportunityFND-05Pre-selected industrial decarbonisation projects receive allowances valued at a fixed carbon premium per tonne of CO2 avoided, paid out periodically for up to 10 years once operations start and emissions avoidance is independently verified.Pre-selected industrial decarbonisation project developers · BusinessesArt. 1(17), inserting Art. 10cd of Directive 2003/87/EC · allocation until 2030OpportunityFND-06Industrial decarbonisation projects can win Carbon Contracts for Difference or carbon premia through competitive bidding, compensating the gap between the strike price and the prevailing carbon price for up to 10 years and de-risking investment.Industrial decarbonisation project developers winning competitive bidding · BusinessesArt. 1(17), inserting Art. 10ce of Directive 2003/87/EC · from 2031OpportunityFND-07Lower-income Member States (GDP per capita below 75% of the EU average) continue receiving Modernisation Fund financing for 2031-2040, funded by auctioning 2% (plus a further 0.5% channelled to Industrial Decarbonisation Bank projects) of the Union-wide allowance quantity, for energy modernisation, efficiency, industrial decarbonisation and electrification investments, including small-scale projects.Beneficiary Member States (GDP per capita below 75% of EU average) and investment recipients therein · GovernmentsArt. 1(18)(a), replacing Art. 10d(1) of Directive 2003/87/EC · 2031-2040OpportunityMST-01Beneficiary Member States must uphold rule-of-law principles throughout Modernisation Fund implementation; breaches affecting sound financial management can trigger suspension of disbursement decisions or of already-adopted disbursements.Beneficiary Member States receiving Modernisation Fund support · GovernmentsArt. 1(19), inserting Art. 10da of Directive 2003/87/EC · 2031-2040RequirementMST-03Member States must actually disburse ETS auction revenues earmarked for decarbonisation purposes within three years of generating them.Member States · GovernmentsArt. 1(14)(c), replacing Art. 10(3) of Directive 2003/87/ECRequirementMST-04Spain, Cyprus, Malta and Slovenia must dedicate their additional solidarity-share auction allowances specifically to the Article 10(3) decarbonisation priority purposes.Spain, Cyprus, Malta, Slovenia (Member States) · GovernmentsArt. 1(14)(b), inserting a sentence in Art. 10(2)(b) of Directive 2003/87/ECRequirementFND-09Electro-intensive industrial sectors exposed to carbon leakage risk can receive state-aid-compliant financial compensation from Member States for indirect ETS costs passed through in electricity prices, funded from up to 25% of that Member State's auction revenue.Sectors/subsectors exposed to genuine carbon leakage risk from indirect (electricity) ETS costs · BusinessesArt. 1(15)(h), replacing Art. 10a(6) of Directive 2003/87/ECOpportunityFND-10New entrant installations can draw free allowances from a dedicated reserve pool, topped up with 200 million allowances released from the Market Stability Reserve and 50 million allowances freed by the CBAM-factor free-allocation reduction.New entrant installations applying for free allocation · BusinessesArt. 1(15)(i)(i), replacing Art. 10a(7), first subparagraph of Directive 2003/87/EC · applies from 30 September 2027OpportunityMSR-01The Market Stability Reserve's intake/release thresholds (833m/947m allowances in circulation for intake; 300m/400m for release) tighten by 4% each year from 2029, automatically reducing the volume of allowances Member States can auction as more allowances are diverted into or held in the reserve.Member States (auctioning allowances) / European Commission (administering the MSR) · GovernmentsArt. 2(2), amending Art. 1(5) of Decision (EU) 2015/1814 · from 2029RequirementTRANS-01Member States must adopt, publish and notify to the Commission their national transposition measures for this Directive by 31 December 2028 (with an earlier 31 December 2027 deadline for specific permitting-related provisions), applying the general measures from 1 January 2029.Member States · GovernmentsArt. 3(1), Transposition · by 31 December 2028Requirement

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