Free allocation is split into tranches: 80% is paid annually once the decarbonisation plan is verified and approved; the remaining 20% is withheld until the competent authority confirms, within two years after the five-year period, that the required investments were actually implemented and delivered significant emissions reductions.
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(3c), first subparagraph 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 accredited third party, per five-year period. as of 2026-08-14
The rule
installation applies for free allocation under the Invest in EU decarbonisation plan regime
Free allocation is split into tranches: 80% is paid annually once the decarbonisation plan is verified and approved; the remaining 20% is withheld until the competent authority confirms, within two years after the five-year period, that the required investments were actually implemented and delivered significant emissions reductions.
Who is affected
Burden drivers
Source text
Upon submission of an Invest in EU decarbonisation plan that has been verified in accordance with Article 15 and approved by the competent authority, 80 % of the amount of free allocation to be received under the relevant five-year period shall be allocated annually to the installation.
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