What is being decided?
The European Commission proposes to amend Directive 2003/87/EC so the EU can raise free allocation levels under the heat and fuel benchmarks for 2027 to 2030.
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ClimateEuropean CommissionJuly 17, 2026
EU Regulation revising heat and fuel benchmarks for 2026–2030
Official titleProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC a...
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2003/87/EC as regards revised benchmark values for the heat and fuel benchmarks for the period from 2026 to 2030
This proposal would amend Directive 2003/87/EC to update the heat and fuel benchmark values for the period from 2026 to 2030.
Understand the proposal
Six questions, grounded in the official record.Who could be affected?
Installations in the EU ETS that receive free allowances under the heat and fuel benchmarks are the main affected group, except the listed oil and gas activities.
Why is this proposed?
The Commission says it is fulfilling an earlier commitment and responding to concerns about carbon leakage while keeping the change within the existing ETS rules.
Where would it apply?
It applies EU-wide within the EU emissions trading system, but only to the heat and fuel benchmark allocation rules for 2026 to 2030.
When could it matter?
The available official record does not specify this yet.
How would it work?
It would work by changing the benchmark update rate that the Commission uses to calculate free allowances, so the increase stays within the available allowance pool and avoids a system-wide reduction.
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