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2026/0211(COD)E1st reading – European Parliament

EU Emissions Trading System: heat and fuel benchmark values for 2026–2030

With the European Parliament, which is preparing its first-reading position.

Last active 17 Jul 2026

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What this bill does

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

It raises free carbon allowances for heat and fuel benchmarks in the EU Emissions Trading System through 2030.

Who it affects

It mainly affects industrial installations that receive free ETS allowances under heat and fuel fallback benchmarks. Oil and gas activities are excluded from the new increase.

Core of the proposal
  • Raises the maximum annual adjustment for heat and fuel benchmarks for 2027-2030.
  • Uses the full extra allowance amount without triggering the cross-sectoral correction factor.
  • Applies the 2026 increase through the 2027 benchmark update.
  • Leaves oil and gas activities outside the new fallback-benchmark increase.
Key provisions
Takes effect
It enters into force on the third day after publication in the Official Journal.
Transitional law
The extra free allocation for 2026 is made available together with the 2027 free allocation; the 2027 update uses only 40% of the adjustment.
Articles changed · 1 across 1 law
  • Directive 2003/87/EC (32003L0087)
    • art. 10a: inserts paragraphs 2a and 2b after paragraph 2, adjusting heat and fuel benchmark update rates for 2027–2030

Documents

1 recent

SourcesOEILEUR-LexEU Law Tracker