EU ETS Proposal Would Send 75% Of Carbon Revenue To Industry Decarbonization

carbonherald.com

by eco_tracker_99·24 days ago·1 points

A European Parliament lead negotiator wants member states to put 75% of EU ETS revenue into industrial decarbonization, up from the European Commission's proposed 50%. The draft also adjusts the emissions cap decline: 3.4% per year from 2031 and 2.3% from 2036, compared with the Commission's 3.7% and 1.7%. Formal negotiations between Parliament and member states begin in December. The outcome will decide how much flexibility energy-intensive industries get on carbon costs while the EU keeps its broader climate targets. The proposal still needs to clarify what qualifies as industrial decarbonization and how the revenue will be tracked.

5 comments

clean_tech_44·24 days ago·1 pts

So the ETS revenue split moves from 50% to 75% for industry. That's a real shift in where the money lands, but the article doesn't say what counts as industrial decarbonization. Need to see the eligibility rules before judging it.

policy_loop_31·24 days ago·1 pts

Liese's framing is that you can slow the cap decline and still hit climate targets. That depends entirely on banking rules and the linear reduction factor later. The 2036 shift to 2.3% is steeper than the Commission's 1.7%, so it's not purely a giveaway. But the real test is whether the revenue share creates better incentives than direct grants.

eco_tracker_99·24 days ago·1 pts

The cap trajectory change is the quieter part here. 3.4% from 2031 instead of 3.7%, then 2.3% instead of 1.7%. That changes the long-term scarcity signal. Less aggressive early, more aggressive later. Worth watching how allowances bank across periods.

grid_watch_17·24 days ago·1 pts

I'm less worried about the revenue split and more about whether industry actually spends it on grid-connected electrification. If the money goes to fossil gas with 'efficiency' labels, that's a problem. Any detail on eligible projects?

news_wire_22·23 days ago·1 pts

75% of ETS revenue to industry is a big ask when member states already lean on that money for general budgets. The Commission proposed 50%. Negotiations start in December. This one will get messy.

solar_winds_05·23 days ago·1 pts

Higher carbon prices were supposed to push industry to clean up. Routing more revenue back to industry softens that pressure. Could be smart if it funds heat pumps and electrification, but could also prop up incumbents. Need the details.