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Requirement · ELEC-07

Conclude, and then honour, a Memorandum of Understanding setting the timeline for the Art. 2(7) exemption and for putting an EU ETS-equivalent carbon price on electricity generation.

Third countries seeking electricity market coupling with the Union, and the Commission must comply, and it sits in an act that is partly law and partly a proposal.

Why it matters

The act this comes from is partly law in force and partly a proposal that can still change.

  • It is Art. 1(1)(c), inserting Art. 2(7a) of Regulation (EU) 2023/956, in the CBAM extension — downstream goods and anti-circumvention. as of 2026-08-14
  • The act gives its timing as: from entry into force (third day after publication), Art. 2. as of 2026-08-14
  • It names one industry by name: Power. as of 2026-08-14
  • Compliance is checked by none, if it happens. as of 2026-08-14
Addressee Third countries seeking electricity market coupling with the Union, and the CommissionAct COM(2025) 989 final, 2025/0419 (COD)Article Art. 1(1)(c), inserting Art. 2(7a) of Regulation (EU) 2023/956Class Governments

The rule

New — no predecessor
Trigger

third country requests to integrate its electricity market with the Union's through market coupling under an international agreement

Obligation

Conclude, and then honour, a Memorandum of Understanding setting the timeline for the Art. 2(7) exemption and for putting an EU ETS-equivalent carbon price on electricity generation.

Who is affected

Addressee
Third countries seeking electricity market coupling with the Union, and the Commission
Class
Governments
Sectors
Names Power and heat
Applies
from entry into force (third day after publication), Art. 2

Burden drivers

No burden drivers recorded on this provision.

Source text

Verbatim

‘Where a third country has requested to integrate its electricity market into that of the Union through market coupling pursuant to an international agreement, the Commission may, when establishing that the relevant third country has fully transposed the electricity market acquis, conclude a Memorandum of Understanding with that third country. The Memorandum of Understanding referred to in the first subparagraph shall set the timeline for the application of the exemption foreseen in Article 2(7) and the timeline for the implementation of a carbon pricing instrument equivalent to the EU ETS, insofar as electricity generation is concerned.

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