Sectors and subsectors not deemed exposed to carbon leakage are cut to 30% of the Article 10a free-allocation quantity, and that residue is phased out in equal annual steps after 2026 to reach zero in 2030.
Operators in sectors and subsectors considered able to pass on allowance costs in product prices (all 'other sectors' except district heating) are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(16)(b), replacing Art. 10b(4), first subparagraph of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: decreasing after 2026, reaching zero in 2030. as of 2026-08-14
- It names no industry: it applies across the economy rather than to one of them. as of 2026-08-14
- Compliance is checked by none, annual. as of 2026-08-14
The rule
sector or subsector classified under Art. 10b as able to pass on more of the costs of allowances in product prices
Sectors and subsectors not deemed exposed to carbon leakage are cut to 30% of the Article 10a free-allocation quantity, and that residue is phased out in equal annual steps after 2026 to reach zero in 2030.
Who is affected
Burden drivers
Source text
Other sectors and subsectors are considered to be able to pass on more of the costs of allowances in product prices, and shall be allocated allowances free of charge at 30 % of the quantity determined pursuant to Article 10a. Unless otherwise decided in the review pursuant to Article 30, free allocations to other sectors and subsectors, except district heating, shall decrease by equal amounts after 2026 so as to reach a level of no free allocation in 2030.
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