ETS: Council and Parliament agree to increase free carbon allowances for energy-intensive industries

"We sealed a deal with the European Parliament and the Irish Presidency of the Council of the EU 2026 on heat and fuel fallback benchmark values for 2026-2030 under the EU Emissions Trading System (ETS),” said Wopke Hoekstra, European Commissioner for Climate, Net-Zero and Clean Growth, on 12 November 2026.

According to the provisional agreement, around 121 million free emission allowances — “worth around €10Bn" — are to be made available over the period 2026-2030 to increase the free allocation to energy-intensive industries.

“This is great news for climate, competitiveness and independence. And it ensures the EU carbon market remains robust, our industry can compete, and our clean transition is fair, predictable and firmly on track,” says Commissioner Hoekstra.

In addition to the 88…