The EU Commission plans to accelerate relief for industry through the revision of the Emission Trading System (ETS). A critical part of this overhaul is intended to be separated from the regular legislative process and adjusted via a delegated or implementing act. Specifically, the focus concerns the allocation of free certificates.
According to reporting by the “Handelsblatt”, citing sources within the Commission, EU officials refer to this as a “quick fix.” This measure aims to ensure that businesses receive increased allocations of free certificates starting again in January 2027, which would represent a significant easing of burdens for the industrial sector. The Commission is scheduled to officially present its plans on July 15. This reform is part of the EU’s adjustment of its climate protection tools to align with the revised 2040 climate targets.
The Commission intends to condition this relief on companies investing in decarbonization within Europe. However, companies are not required to invest the entirety of the savings generated from the free certificates; negotiations are ongoing regarding investments amounting to between 50 and 70 percent of these benefits.
