Operators applying for free allocation must establish, publish and submit an 'Invest in EU decarbonisation plan' committing to decarbonisation investments equal to the value of 100% of their free allocation for the relevant five-year period.

Operators applying for free allocation must comply, 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)(d), inserting Art. 10a(3b) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
The act gives its timing as: from 30 September 2029, applying to the five-year period starting 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 competent authority, per five-year period. as of 2026-08-14

Addressee Operators applying for free allocationAct COM(2026) 616 final, 2026/0212 (COD)Article Art. 1(15)(d), inserting Art. 10a(3b) of Directive 2003/87/ECClass Businesses

The rule

New — no predecessor

Trigger

operator applies for free allocation for a five-year period starting 2031

Obligation

Operators applying for free allocation must establish, publish and submit an 'Invest in EU decarbonisation plan' committing to decarbonisation investments equal to the value of 100% of their free allocation for the relevant five-year period.

Who is affected

Addressee

Operators applying for free allocation

Class

Businesses

Sectors

No sector named — applies by size or activity

Applies

from 30 September 2029, applying to the five-year period starting 2031

Burden drivers

D1 · D3 · D5 — 3 of 7 marks fire on this provision.

Source text

Verbatim

Operators of installations carrying out activities listed in Annex I shall establish, make publicly available and submit a plan to invest in decarbonisation in the EU (‘Invest in EU decarbonisation plan’) for the installations for which they apply for free allocation.

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