This is an invitation-only event. If interested in participating, please email: elesaulnier@ercst.org fcalvo@ercst.org

This stakeholder meeting marks the presentation of the third report in our series dedicated to the 2026 review of the EU Emissions Trading System, following the publication of the first and second reports in April and September, respectively.

This event will focus on free allocation conditionality in the EU ETS. By making free allocation conditional on an investment plan, the European Commission’s proposal of 17 July appears to label it a decarbonisation subsidy rather than a carbon leakage protection tool. We will explore alternatives to this approach, including “double conditionality”: coupling company obligations with external conditions beyond their control, such as a market for low-carbon products, the availability of  low-carbon electricity and hydrogen at competitive prices, and the necessary infrastructures.