Establishing the Temporary Decarbonisation Fund
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With the European Parliament, which is preparing its first-reading position.
Last active 19 May 2026
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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
09 Jun 2026The most recent development in this bill's progress.
1st reading – European Parliament → 1st reading – European Parliament
1st reading – European Parliament → 1st reading – European Parliament
Documents
1 recentSourcesOEILEUR-LexEU Law Tracker