EU carbon rules / Regulations / ETS2 Frontloading Facility
Up to €3bn advanced to Member States
This regulation applies to:
The local regmap does not specify the primary source text; this entry is taken from the text of Directive (EU) 2023/959 amending Directive 2003/87/EC (new Articles 30a, 30b and 30d). The source is the official EUR-Lex text.
The following provisions define its scope:
Article 30a of Directive 2003/87/EC — Scope (Chapter IVa)
The provisions of this Chapter shall apply to emissions, greenhouse gas emissions permits, the issue and surrender of allowances, monitoring, reporting and verification in respect of the activity referred to in Annex III. This Chapter shall not apply to any emissions covered by Chapters II and III.
Article 30b(1) of Directive 2003/87/EC — Greenhouse gas emissions permits
1. Member States shall ensure that, from 1 January 2025, no regulated entity carries out the activity referred to in Annex III unless that regulated entity holds a permit issued by a competent authority in accordance with paragraphs 2 and 3 of this Article.
Article 30d(2) of Directive 2003/87/EC — auctioning and front-loading
2. The auctioning of the allowances under this Chapter shall start in 2027 with an amount corresponding to 130 % of the auction volumes for 2027 established on the basis of the Union-wide quantity of allowances for that year and the respective auction shares and volumes pursuant to paragraphs 3 to 6 of this Article. The additional 30 % to be auctioned shall only be used for surrendering allowances pursuant to Article 30e(2) and may be auctioned until 31 May 2028. The additional 30% shall be deducted from the auction volumes for the period from 2029 to 2031. The conditions for the auctions provided for in this paragraph shall be set in accordance with paragraph 7 of this Article and Article 10(4). In 2027, 600 million allowances covered by this Chapter shall be created as holdings in the market stability reserve pursuant to Article 1a(3) of Decision (EU) 2015/1814.
| Duty | Trigger | Evidence | Timing |
|---|---|---|---|
| Use the ETS2 frontloading facility The European Commission and the EIB establish frontloading to ease ETS2 start-up costs. | ETS2-related Member States and companies | Frontloading application | From 2026 |