Member State must offer an operator whose installation falls below the 20MW combustion threshold (after reducing emissions via process changes) the option to remain voluntarily in the EU ETS for up to two further five-year allocation periods.
Member States (competent authorities) / operators of installations falling below the 20MW threshold 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(1), replacing the first subparagraph of Art. 2(1) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: applies from 1 January 2029. 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, if it happens. as of 2026-08-14
The rule
installation with combustion units of total rated thermal input exceeding 20 MW changes production processes to reduce emissions and no longer meets that threshold
Member State must offer an operator whose installation falls below the 20MW combustion threshold (after reducing emissions via process changes) the option to remain voluntarily in the EU ETS for up to two further five-year allocation periods.
Who is affected
Burden drivers
Source text
Where an installation that is included within the scope of the EU ETS due to the operation of combustion units with a total rated thermal input exceeding 20 MW changes its production processes to reduce its greenhouse gas emissions and no longer meets that threshold, the Member State in which that installation is situated shall provide the operator with the options of remaining within the scope of the EU ETS until the end of the current and the two following five-year periods referred to in Article 11(1), second subparagraph, following the change to its production processes.
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