New entrant installations can draw free allowances from a dedicated reserve pool, topped up with 200 million allowances released from the Market Stability Reserve and 50 million allowances freed by the CBAM-factor free-allocation reduction.
New entrant installations applying for free allocation 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(15)(i)(i), replacing Art. 10a(7), first subparagraph of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: applies from 30 September 2027. 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 competent authority, n/a. as of 2026-08-14
The rule
installation qualifies as a 'new entrant' under Art. 3(h) applying for free allocation
New entrant installations can draw free allowances from a dedicated reserve pool, topped up with 200 million allowances released from the Market Stability Reserve and 50 million allowances freed by the CBAM-factor free-allocation reduction.
Who is affected
Burden drivers
Source text
Allowances from the maximum amount referred to in paragraph 5 of this Article which were not allocated for free by 2020 shall be set aside for new entrants, together with 200 million allowances placed in the market stability reserve pursuant to Article 1(3) of Decision (EU) 2015/1814 and 50 million allowances from the quantity of allowances resulting from the reduction of free allocation referred to in paragraph 1a of this Article.
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