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DRAFT BUDGETARY ASSESSMENT (COM(2026)0616 – C100188/2026 – 2026/0212(COD))

On the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC and Decision (EU) 2015/1814 as regards driving competitiveness and cost-effective decarbonisation

BUDG-PA-796539

Committee on Budgets · Rapporteur: Danuše Nerudová

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The Committee on Budgets gives its budgetary assessment of a proposed directive amending the EU Emissions Trading System (EU ETS) and related rules, and tables five amendments to the proposal. It finds the estimated impact on the Union budget for 2028-2034 limited, at EUR 51.869 million, with most resource needs covered by external assigned revenue. It asks for resources to match new tasks for two agencies, welcomes the Modernisation Fund and solidarity mechanism but regrets a relative decrease in Modernisation Fund resources, and calls for a higher minimum share of auction revenues for decarbonisation. It restates Parliament's call for new own resources of at least EUR 60 billion per year and asks the Commission to estimate ETS 1 auction proceeds for 2028-2034. The amendments raise the Modernisation Fund share of the ETS cap to 3,5 %, add a recital on budgetary assessment, extend reporting to Parliament, keep the 100 million allowance reserve, and set the auction share for beneficiary member states at 3,5 %.

Committee position. The Committee on Budgets finds the proposal's budgetary impact limited and compatible with the MFF and own resources rules, regrets the relative decrease in Modernisation Fund resources, and proposes five amendments, including raising the Modernisation Fund share to 3,5 % of the ETS cap.

Key points

  1. The estimated financial impact on the Union budget for 2028-2034 is EUR 51.869 million: EUR 22.4 million operational from the European Competitiveness Fund (ECF) and EUR 29.469 million administrative.
  2. Implementing the proposal would require 168 additional full-time equivalent (FTE) staff, 26 financed by the Union budget and 142 from fees.
  3. The proposal would create external assigned revenue from EU ETS funds for permanent carbon removals, a subsidy to the European Maritime Safety Agency (EMSA) and the Union Registry.
  4. The proposed Own Resources Decision would introduce an ETS-based own resource equal to 30 % of member states' auction revenues; the Commission estimates the revision would raise its revenue by EUR 728.3 million, or 7.6 %.
  5. The committee notes the limited impact on the voted budget and MFF ceilings, and says post-2027 expenditure and staffing depend on the next Multiannual Financial Framework (MFF) negotiations and the annual budgetary procedure.
  6. It insists that new responsibilities for the European Climate, Infrastructure and Environment Agency (CINEA) and EMSA be matched by sufficient human and financial resources.
  7. It welcomes continuing the Modernisation Fund and solidarity mechanism, but regrets the relative decrease in Modernisation Fund resources from auctioning 2 % of allowances and the planned reduction after 18 months of the reserve for member states below 75 % of average GDP per capita.
  8. It welcomes the proposed minimum allocation of auction revenues for decarbonising ETS sectors and calls on co-legislators to consider increasing it.
  9. It reaffirms support for new own resources of at least EUR 60 billion per year for 2028-2034, including a digital levy, a levy on online gambling and a levy on crypto assets, and asks the Council and Commission to take Parliament's proposals into account.
  10. It regrets that the Legislative Financial and Digital Statement (LFDS) does not quantify the impact on the proposed ETS-based own resource and asks the Commission to estimate ETS 1 auction proceeds for 2028-2034.
  11. It says the net impact on Union revenue remains uncertain because the proposal reduces allowances available for auctioning and the carbon price depends on market developments and on extending the EU ETS to sectors such as waste incineration.
  12. It recalls that the EU ETS is primarily a climate policy tool to reduce greenhouse gas (GHG) emissions, not to generate revenue, and finds the proposal compatible with the MFF, own resources system, interinstitutional agreement and Financial Regulation principles.

Who is affected

  • Member states: auction revenue reporting would go to Parliament as well as the Commission, and beneficiary states would receive a 3,5 % auction share.
  • CINEA and EMSA: additional responsibilities would need sufficient staff and funding.
  • Member states with GDP per capita below 75 % of the Union average: they keep a 100 million allowance reserve for projects.
  • Modernisation Fund beneficiary member states: the fund would be sized at 3,5 % of the ETS cap, with 0.5 % more for the Industrial Decarbonisation Bank.

Figures and deadlines

  • EUR 51.869 million: estimated financial impact on the Union budget for 2028-2034.
  • EUR 22.4 million: operational expenditure from the European Competitiveness Fund under Heading 2.
  • EUR 29.469 million: administrative expenditure under Heading 4.
  • 168 additional full-time equivalent (FTE) staff, of which 26 financed by the Union budget and 142 from fees.
  • 30 %: share of member states' auction revenues in the proposed ETS-based own resource.
  • EUR 728.3 million, or 7.6 %: estimated increase in ETS-based own resource revenue from the revision.
  • At least EUR 60 billion per year: Parliament's position on new own resources for 2028-2034.
  • 100 million allowances: reserve for projects in member states below 75 % of average GDP per capita in the first 18 months.