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Opportunity · FRE-08

The carbon-leakage sector/subsector determination governing eligibility for maximum free allocation now runs through 2040 instead of expiring in 2030, extending continued free-allocation eligibility for exposed sectors by a decade.

Sectors and subsectors deemed exposed to carbon leakage risk 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)(a), amending Art. 10b(1) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
  • The act gives its timing as: n/a. 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, n/a. as of 2026-08-14
Addressee Sectors and subsectors deemed exposed to carbon leakage riskAct COM(2026) 616 final, 2026/0212 (COD)Article Art. 1(16)(a), amending Art. 10b(1) of Directive 2003/87/ECClass Businesses

The rule

New — no predecessor
Trigger

sector/subsector is listed as exposed to a genuine risk of carbon leakage under Art. 10b

Benefit

The carbon-leakage sector/subsector determination governing eligibility for maximum free allocation now runs through 2040 instead of expiring in 2030, extending continued free-allocation eligibility for exposed sectors by a decade.

Who is affected

Addressee
Sectors and subsectors deemed exposed to carbon leakage risk
Class
Businesses
Sectors
No sector named — applies by size or activity
Applies
n/a

Burden drivers

No burden drivers recorded on this provision.

Source text

Verbatim

in paragraph 1, second sentence, ‘2030’ is replaced by ‘2040’;

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