Member States must earmark at least 50% of their ETS auction revenue (excluding indirect-cost compensation) for a defined list of decarbonisation priority purposes (clean energy/grids, industrial decarbonisation, maritime/aviation decarbonisation, modal shift, municipal waste hierarchy measures, circularity, lead markets for low-carbon products, R&D).
Member States 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(14)(c), replacing Art. 10(3) 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 6 industries by name: Steel, Chemicals, Shipping, Aviation, Waste and Construction. as of 2026-08-14
- Compliance is checked by self-declaration, annual. as of 2026-08-14
The rule
receipt of revenue from auctioning ETS allowances
Member States must earmark at least 50% of their ETS auction revenue (excluding indirect-cost compensation) for a defined list of decarbonisation priority purposes (clean energy/grids, industrial decarbonisation, maritime/aviation decarbonisation, modal shift, municipal waste hierarchy measures, circularity, lead markets for low-carbon products, R&D).
Who is affected
Burden drivers
Source text
Member States shall use at least 50% of those revenues, with the exception of the revenues used for the compensation of indirect carbon costs referred to in Article 10a(6) of this Directive, or the equivalent in financial value of those revenues, to support the decarbonisation of ETS sectors, for one or more of the following priority purposes:
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