BILL·legislative alert
Sign in
2025/0418(COD)ETrilogues (interinstitutional negotiations)

Establishing the Temporary Decarbonisation Fund

In interinstitutional negotiations (trilogues). Parliament and Council are working toward a provisional agreement, which would still need formal adoption to become law.

Last active 15 Sept 2026

AI system. Responses may contain errors. Why this matters

Track this billGet an email when the proposal moves: phase change, new document, or terminal outcome.

What this bill does

In plain terms: what it changes and who it affects.

This bill creates a temporary EU fund to help high-emission industries pay for decarbonisation investments and reduce carbon leakage risk.

Who it affects

It affects operators of EU ETS industrial installations producing eligible carbon-intensive goods, especially energy-intensive sectors exposed to remaining carbon leakage risk.

Core of the proposal
  • Provides financial support in 2028 and 2029 for eligible production in 2026 and 2027.
  • Finances the fund through Member State contributions equal to 25% of relevant CBAM certificate revenues.
  • Requires beneficiaries to implement energy-audit recommendations or commit equivalent decarbonisation or climate-neutrality investments.
  • Uses a single 2028 application process, with national authorities assessing applications and the Commission deciding disbursements.
Key provisions
Takes effect
The Regulation enters into force on the twentieth day following publication in the Official Journal.
Transitional law
Support may cover eligible investments and production already completed before entry into force, if they meet the Regulation’s environmental objectives.
Articles changed · 3 across 1 law
  • Regulation (EU, Euratom) 2024/2509 (32024R2509)
    • art. 21(5): derogates to classify Member State contributions as external assigned revenue
    • art. 12(4)(c): derogates so excess revenues are returned to Member States, not carried over
    • art. 196(3): derogates to allow support for already completed investments and production

Latest update

17 Sept 2026

The most recent development in this bill's progress.

1st reading – Council of the EU → Trilogues (interinstitutional negotiations)

1st reading – Council of the EU → Trilogues (interinstitutional negotiations)

Documents

1 recent

SourcesOEILEUR-LexEU Law Tracker