Sittings · Document

DRAFT BUDGETARY ASSESSMENT (COM(2025)0990 – C100353/2025 – 2025/0418(COD)) 2026-04-30

On the proposal for a Regulation of the European Parliament and of the Council establishing the Temporary Decarbonisation Fund

Committee on Budgets · Rapporteur: Danuše Nerudová

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✦ In short · AI summary of this text, generated 18 Sept 2026

The Committee on Budgets gives its budgetary assessment of the proposed Temporary Decarbonisation Fund (TDF), which supports energy-intensive operators facing carbon leakage risk. It welcomes that 25% of Member States' CBAM revenues fund the TDF as external assigned revenue, and that this spending sits outside the EU own resources system. It confirms the fund is compatible with current and next multiannual financial framework (MFF) ceilings, and asks the Commission to report on implementation and to propose reusing leftover revenues. It insists on new budget lines approved by the Budget Authority, extra scrutiny and transparency for assigned revenue, and no weakening of anti-fraud measures in negotiations.

Committee position. The Committee on Budgets concludes that the TDF is compatible with the MFF, welcomes the 25% CBAM transfer, and asks for Commission reporting, reuse of leftover revenues, new budget lines approved by the Budget Authority, and no weakening of Article 12 anti-fraud measures.

Key points

  1. The TDF complements emissions trading and CBAM policies by giving financial support to operators in energy-intensive sectors facing remaining carbon leakage risk.
  2. The measure is targeted, limited in volume and temporary until the upcoming ETS revision devises a more structural solution to carbon leakage.
  3. Member States are to transfer 25% of their CBAM revenues to the Commission in 2028 and 2029, treated as external assigned revenue for a new TDF budget line.
  4. The Commission is to report on the fund's implementation to Parliament and Council by 31 December 2030.
  5. The committee regrets that the Just Transition Fund is no longer part of the Commission's proposal on the next MFF.
  6. It welcomes that EU-generated public revenue is spent at EU level, and that the 25% CBAM share is compatible with using 75% of CBAM proceeds as own resources.
  7. It confirms that assigned-revenue expenditure is not counted against MFF ceilings, so the proposal is compatible with the current and next MFF.
  8. It notes that one quarter of early CBAM revenue yields around EUR 300 to 350 million per year, leaving around EUR 600 million for TDF calls in 2028 and 2029.
  9. It calls on the Commission to propose by 31 March 2030 a legislative proposal to reuse remaining revenues for additional support to covered operators.
  10. It calls on the Commission to present by December 2028 an implementing report on applications, sectors, demand and whether appropriations suffice, and to assess whether prolongation is needed.
  11. It insists that assigned revenue be subject to extra scrutiny and transparency, with detailed reporting in the annual budget procedure and in Working Document (Part V).
  12. It asserts that new budget lines must be introduced and approved by the Budget Authority on both revenue and expenditure sides, and that Article 12 anti-fraud measures must not be weakened.

Who is affected

  • Operators in energy-intensive sectors facing carbon leakage risk: eligible for TDF financial support.
  • Member States: must transfer 25% of CBAM revenues to the Commission in 2028 and 2029.
  • The Commission: must report on implementation and propose reuse of leftover revenues.
  • The Budget Authority: must introduce and approve new budget lines.

Figures and deadlines

  • 25% of CBAM revenues transferred by Member States to the Commission in 2028 and 2029.
  • 31 December 2030: deadline for the Commission's implementation report.
  • EUR 300 to 350 million per year: early-phase CBAM revenue from one quarter of collections.
  • Around EUR 600 million available for TDF calls in 2028 and 2029.
  • 31 March 2030: deadline for a legislative proposal on reusing remaining revenues.
  • December 2028: deadline for the Commission's implementing report.
  • Approximately EUR 1 million per year: estimated administrative costs.

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