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Opportunity · FRE-09

District heating installations get a slower phase-out of free allocation, reaching zero only in 2040 instead of 2030 as applies to other 'other sectors'.

District heating installations 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)(b), replacing Art. 10b(4), first subparagraph of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
  • The act gives its timing as: 2031-2040. 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, annual. as of 2026-08-14
Addressee District heating installationsAct COM(2026) 616 final, 2026/0212 (COD)Article Art. 1(16)(b), replacing Art. 10b(4), first subparagraph of Directive 2003/87/ECClass Businesses

The rule

New — no predecessor
Trigger

installation is in the district heating sector, categorised as 'other sectors and subsectors' under Art. 10a

Benefit

District heating installations get a slower phase-out of free allocation, reaching zero only in 2040 instead of 2030 as applies to other 'other sectors'.

Who is affected

Addressee
District heating installations
Class
Businesses
Sectors
No sector named — applies by size or activity
Applies
2031-2040

Burden drivers

No burden drivers recorded on this provision.

Source text

Verbatim

Free allocation to district heating shall decrease by equal amounts after 2030 so as to reach a level of no free allocation in 2040.

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