Industrial decarbonisation projects can win Carbon Contracts for Difference or carbon premia through competitive bidding, compensating the gap between the strike price and the prevailing carbon price for up to 10 years and de-risking investment.
Industrial decarbonisation project developers winning competitive bidding 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(17), inserting Art. 10ce of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: from 2031. 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 accredited third party, per bidding round; payments over up to 10 years. as of 2026-08-14
The rule
project selected via competitive bidding procedure for a CCfD or carbon premium
Industrial decarbonisation projects can win Carbon Contracts for Difference or carbon premia through competitive bidding, compensating the gap between the strike price and the prevailing carbon price for up to 10 years and de-risking investment.
Who is affected
Burden drivers
Source text
From 2031, the Commission shall use the revenues from the number of allowances reserved in line with Article 10cc reserving 400 million allowances to support industrial decarbonisation projects within the Union through competitive bidding procedures awarding Carbon Contracts for Difference (CCfD) or carbon premia without prejudice to the use of other forms of support where appropriate.
View source →