Skip to content
OPINION (COM(2025)0990 – C100353/2025 – 2025/0418(COD))

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

ITRE-AD-786735

Committee on Industry, Research and Energy · Rapporteur: Massimiliano Salini

Official HTML ↗ PDF DOCX
✦ In shortFull textProcedure & committee votes
✦ In short · AI summary of this text, generated 18 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

The Committee on Industry, Research and Energy gives its opinion on the proposed regulation establishing the Temporary Decarbonisation Fund, which would give temporary financial support to energy-intensive producers facing carbon leakage risk as free EU ETS allowances are phased out. The rapporteur regrets that CBAM addresses imports only, not exports, and urges the Commission to propose a permanent export solution in the 2026 ETS review; free allowances should remain until then. The opinion amends the proposal to require an early Commission assessment of the Fund's effectiveness by 31 March 2028, with a legislative proposal to widen its scope and increase its resources where appropriate. It clarifies that support must reflect the phase-out of free allocation for all relevant precursors, and must consider carbon price differences in export markets. It adds simplified conditionality and application rules for small and medium-sized enterprises, and requires the Commission to assess market access barriers and propose a support mechanism for undertakings not primarily exporting.

Committee position. The committee proposes amendments to the Commission proposal, including an early review of the Fund with a possible legislative proposal to widen its scope and resources, clarification that support covers precursors' phased-out free allocation, simplified rules for SMEs, and an assessment of market access barriers.

Key points

  1. The Fund would give transitional, targeted support to producers in energy-intensive sectors such as aluminium, fertilizers, iron and steel pending the 2026 EU ETS revision.
  2. The rapporteur urges the Commission to propose, in the ETS review, a permanent solution against carbon leakage on export markets, and says free allowances should remain as long as CBAM does not address export risk.
  3. The opinion requires the Commission to assess by 31 March 2028 whether the Fund prevents carbon leakage, supports export competitiveness, and has adequate resources, and to propose a revision where appropriate.
  4. Financial support must cover additional carbon costs across the whole production process, including the phase-out of free allocation for all relevant precursors as defined in Regulation 2025/2620.
  5. Eligible goods would include those listed in the Annex and goods identified as subject to a heightened remaining risk of carbon leakage under Article 6(3).
  6. Member States must communicate their annual contributions for 2026 and 2027 by 31 December 2027 and 31 December 2028, and transfer the amounts by 31 March 2029 as external assigned revenue.
  7. Operators producing and exporting eligible goods may apply for support by 31 March 2028, submitting production and export data for 2026 and 2027.
  8. The calculation of support must take into account the annual average closing prices of EU ETS allowances in 2026 and 2027 and the carbon price, or its absence, in the export market.
  9. Competent authorities must assess the competitiveness risk in the export destination caused by differences in carbon pricing and factor it into the support amount.
  10. SMEs would benefit from simplified conditionality and a simplified application procedure, relying on existing documents and not requiring new climate-neutrality plans or audits not otherwise required.
  11. The Commission must carry out an impact assessment within one year on a support mechanism for undertakings facing barriers to international markets, and then submit a legislative proposal.
  12. Member States must prevent, detect and tackle fraud, corruption, conflicts of interest, non-compliance and other irregularities, verify use of support, and the Commission may reduce and recover funds.

Who is affected

  • Energy-intensive producers in aluminium, fertilizers, iron and steel, who would receive transitional support for carbon costs.
  • Small and medium-sized enterprises, which would get simplified conditionality and application rules.
  • Member States, which must collect contributions, run applications and verify compliance.
  • The Commission, which must assess the Fund, report on spending and propose revisions or new support mechanisms.
  • Operators exporting eligible goods, who may apply for support by 31 March 2028.

Figures and deadlines

  • Support years 2028 and 2029, based on the production reference period 2026–2027.
  • Single call for applications in 2028 for the production reference period 2026-2027.
  • Member States communicate annual contributions for 2026 and 2027 by 31 December 2027 and 31 December 2028.
  • Member States transfer contributions by 31 March 2029.
  • Commission assessment of the Fund's effectiveness by 31 March 2028.
  • Commission report on expenditure by 31 December 2030.
  • Impact assessment on market access barriers within one year from entry into force.
  • Applications for support by 31 March 2028.