NVAS — Vodík v návrhu revízie EU ETS

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(ak) ‘municipal waste’ means municipal waste as defined in Article 3, point (2b) of
Directive 2008/98/EC;
(al) ‘synthetic fuels’ means renewable fuels of non -biological origin as defined in Article
2, point (36) of Directive (EU) 2018/2001 and low-carbon fuels as defined in Article 2,
point (13), of Directive (EU) 2024/1788 of the European Parliament and of the Council*;
* Directive (EU) 2024/1788 of the European Parliament and of the Council of 13 June 2024 on common
rules for the internal markets for renewable gas, natural gas and hydrogen, amending Directive (EU)
2023/1791 and repealing Directive 2009/73/EC (recast) (OJ L, 2024/1788, 15.7.2024, ELI:
http://data.europa.eu/eli/dir/2024/1788/oj).’;
(am) ‘offshore operations’ means activities in connection with the exploration, appraisal
or exploitation of natural resources of the seabed and subsoil, or activities in connection
with offshore installations or offshore infrastructure, but excluding the activities of
maritime transport of oil and gas;
(an) ‘offshore worksite’ means the geographical area covered by an authorisation
delivered by the competent authority for conducting offshore operations;
(ao) ‘business flight’ means a flight that is performed with a business aircraft included on
the list adopted by the Commission pursuant to Article 3c(6).
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CHAPTER II
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AVIATION AND MARITIME TRANSPORT
Article 3a
Scope
Articles 3b to 3g shall apply to the allocation and issue of allowances in respect of the
aviation activities listed in Annex I. Articles 3ga to 3gg shall apply in respect of the
maritime transport activities listed in Annex I.
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Article 3b
Aviation activities
By 2 August 2009, the Commission shall, in accordance with the ► M9 examination
procedure referred to in Article 22a(2) ◄ , develop guidelines on the detailed
interpretation of the aviation activities listed in Annex I.
Article 3c
Total quantity of allowances for aviation
1.
For the period from 1 January 2012 to 31 December 2012, the total quantity of allowances
to be allocated to aircraft operators shall be equivalent to 97 % of the historical aviation
emissions.
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The allowances allocated under this paragraph shall cover:
(a)
70 % of the remaining price differential between the use of fossil kerosene and hydrogen
from renewable energy sources, and advanced biofuels as defined in Article 2, second
paragraph, point (34), of Directive (EU) 2018/2001 of the European Parliament and of
the Council ( 9 ), for which the emission factor is zero under Annex IV or under the
implementing act adopted pursuant to Article 14 of this Directive;
(b)
95 % of the remaining price differential between the use of fossil kerosene and renewable
fuels of non-biological origin compliant with Article 25 of Directive (EU) 2018/2001,
used in aviation, for which the emission factor is zero under Annex IV or under the
implementing act adopted pursuant to Article 14 of this Directive;
(c)
100 % of the remaining price differential between the use of fossil kerosene and any
eligible aviation fuel that is not derived from fossil fuels covered by the first subparagraph
of this paragraph, at airports situated on islands smaller than 10 000 km 2 and with no
road or rail link with the mainland, at airports which are insufficiently large to be defined
as Union airports in accordance with a regulation on ensuring a level playing field for
sustainable air transport and at airports located in an outermost region;
(d)
in cases other than those referred to in points (a), (b) and (c), 50 % of the remaining price
differential between the use of fossil kerosene and any eligible aviation fuel that is not
derived from fossil fuels covered by the first subparagraph of this paragraph.
The allocation of allowances under this paragraph may take into account possible
support from other schemes at national level.
On a yearly basis, commercial aircraft operators may apply for an allocation of allowances
based on the quantity of each eligible aviation fuel referred to in this paragraph used on
flights for which allowances have to be surrendered in accordance with Article 12(3)
between 1 January 2024 and 31 December 2030, excluding flights for which that
requirement is considered to be satisfied pursuant to Article 28a(1). If, for a given year,
the demand for allowances for the use of such fuels is higher than the availability of
allowances, the quantity of allowances shall be reduced in a uniform manner for all
aircraft operators concerned by the allocation for that year.
The Commission shall publish in the Official Journal of the European Union details of the
average cost difference between fossil kerosene, taking into account incentives from the
price of carbon and from harmonised minimum levels of taxation on fossil fuels, and the
relevant eligible aviation fuels, on a yearly basis for the previous year.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive by establishing the detailed rules for the yearly calculation of
the cost difference referred to in the sixth subparagraph of this paragraph, for the
allocation of allowances for the use of the fuels identified in the first subparagraph of this
paragraph and for the calculation of the greenhouse gas emissions saved as a result of the
use of fuels as reported under the implementing act adopted pursuant to Article 14(1),
and establishing the arrangements for taking into account incentives from the price of
carbon and from harmonised minimum levels of taxation on fossil fuels.

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By 1 January 2028, the Commission shall carry out an evaluation regarding the
application of this paragraph and submit the results of that evaluation in a report to the
European Parliament and to the Council in a timely manner. The report may, where
appropriate, be accompanied by a legislative proposal to allocate a capped and time-
limited amount of allowances until 31 December 2034 to further incentivise the use of
the fuels identified in the first subparagraph of this paragraph, in particular the use of
renewable fuels of non-biological origin compliant with Article 25 of Directive
(EU) 2018/2001, used in aviation, for which the emission factor is zero under Annex IV
or under the implementing act adopted pursuant to Article 14 of this Directive.
From 1 January 2028, the Commission shall evaluate the application of this paragraph in
the annual report it is required to submit pursuant to Article 10(5).
For the period from 1 January 2024 until 31 December 2030, a maximum of 20 million of
the total quantity of allowances referred to in paragraph 5 shall be reserved in respect of
aircraft operators, on a transparent, equal-treatment and non-discriminatory basis, for
the use of sustainable aviation fuels, and other aviation fuels that are not derived from
fossil fuels, referred to in Article 4(1), second subparagraph, of Regulation (EU)
2023/2405 of the European Parliament and the Council* and for the use of electricity, for
subsonic flights for which allowances have to be surrendered in accordance with Article
12(3) of this Directive and for which the fulfilment of that obligation is not considered to
be satisfied pursuant to Article 28a(1) of this Directive. For business flights, the reserved
amount shall be available only for the use of electricity. Where eligible aviation fuel
cannot be physically attributed to a specific flight, the allowances reserved under this
subparagraph shall be available for eligible aviation fuels uplifted in the EEA
proportionate to the emissions from flights, except business flights, of the aircraft
operator for which allowances have to be surrendered in accordance with Article 12(3)
of this Directive and the fulfilment of that obligation is not considered to be satisfied
pursuant to Article 28a(1) of this Directive. The same principle shall apply to defining the
volume of fuels to which zero emission factor applies.
The allowances reserved under the first subparagraph of this paragraph shall be
allocated by the Member States to cover part of or all of the price differential between the
use of fossil kerosene and the use of the relevant eligible aviation fuels, taking into
account incentives from the price of carbon and from harmonised minimum levels of
taxation on fossil fuels. When calculating that price differential, the Commission shall take
into account the technical report published by the European Union Aviation Safety
Agency pursuant to Article 13(1) of Regulation (EU) 2023/2405. Member States shall
ensure the visibility of funding under this paragraph in a manner corresponding to the
requirements in Article 30m(1), points (a) and (b), of this Directive.
The allowances allocated under this paragraph shall cover:
(a) 50 % of the remaining price differential between the use of fossil kerosene and
advanced biofuels as defined in Article 2, second paragraph, point (34), of
Directive (EU) 2018/2001 of the European Parliament and of the Council **, for
which the emission factor is zero under Annex IV to this Directive or under the
implementing act adopted pursuant to Article 14 of this Directive;
(b) 60 % of the remaining price differential between the use of fossil kerosene and
hydrogen from renewable energy sources, and drop-in renewable fuels of non-
biological origin compliant with Article 25 of Directive (EU) 2018/2001, used in

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aviation, for which the emission factor is zero under Annex IV to this Directive or
under the implementing act adopted pursuant to Article 14 of this Directive;
(c) 100 % of the remaining price differential between the use of fossil kerosene
and any eligible aviation fuel that is not derived from fossil fuels covered by the
first subparagraph of this paragraph, at airports situated on islands smaller than
10 000 km2 and with no road or rail link with the mainland and at airports located
in an outermost region, where the physical delivery of the eligible aviation fuel,
outside of a mass balance system, took place;
(d) until 31 December 2029, in cases other than those referred to in points (a), (b)
and (c), 30 % of the remaining price differential between the use of fossil kerosene
and any eligible aviation fuel that is not derived from fossil fuels covered by the
first subparagraph of this paragraph.
(e) from 1 January 2027, the same number of allowances per megajoule (MJ) of
electricity consumed as aircraft operators are entitled to receive pursuant to point
(b) for the use of drop-in renewable fuels of non-biological origin, in case of
electric or hybrid aircraft performing flights for which allowances have to be
surrendered in accordance with Article 12(3).
Fuels shall be eligible for support referred to in this paragraph only if they are produced
in the EEA, in a third country that has an emissions trading system linked with the EU
ETS, or in a third country to which the Union provides support pursuant to Article 25b.
Fuels referred to in the third subparagraph, points (a), (b) and (d), shall be eligible for a
10 percentage point increase in coverage if they are produced using feedstock that is
sourced in the Union, in a third country that has an emissions trading system linked with
the EU ETS, or in a third country to which the Union provides support pursuant to Article
25b.
The allocation of allowances under this paragraph may take into account possible
support from other schemes at national, Union, or international level.
On a yearly basis, aircraft operators may apply for an allocation of allowances based on
the quantity of each eligible aviation fuel referred to in this paragraph used on subsonic
flights, with the exception of business flights, for which allowances have to be
surrendered in accordance with Article 12(3) between 1 January 2024 and 31 December
2040, excluding flights for which that requirement is considered to be satisfied pursuant
to Article 28a(1). On a yearly basis, aircraft operators may apply for an allocation of
allowances in case of electric or hybrid aircraft using electricity or hydrogen for
performing any flight for which allowances have to be surrendered in accordance with
Article 12(3) until 31 December 2035.
If an aircraft operator demonstrates to the satisfaction of the Commission a binding long-
term fuel supply contract for the fuels referred to in the third subparagraph, points (a),
(b) and (e), which binds both the fuel supplier and the aircraft operator, and is valid for
at least three years, the allowances covering the price difference for each year of the
duration of the contract, for a maximum of five years, shall be reserved for that aircraft
operator. The yearly allocation of the allowances for the use of the eligible fuels delivered
under those contracts shall be done the same way as set out in the second to fourth
subparagraphs. Allowances reserved under this point cannot exceed 10 million.

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If, for a given year, the demand for allowances pursuant to this paragraph is higher than
the availability of allowances, the quantity of allowances shall be reduced in a uniform
manner for all aircraft operators concerned by the allocation for that year.
Significant reductions in climate impacts from contrails in the order of millions of tonnes
of CO2e may be incentivised through the yearly use of no more than 420 000 allowances.
From the amount reserved pursuant to the first subparagraph, a total of up to 3 million
allowances, available until 31 December 2033, shall be dedicated to the cost-effective
reduction of climate impacts from contrails. Member States shall allocate allowances
equal to 0,1 percent of the verified emissions of an aircraft operator, upon its request,
which has embedded contrails forecasting models in its flight planning tools. In order to
be eligible for this allocation aircraft operators shall make available the contrail forecasts
to their operations control centre or equivalent, which shall be instructed to assess their
operational viability and, if possible, to incorporate them when filing the corresponding
flights. An additional amount equal to 0,02 percent of the verified emissions shall be
allocated to aircraft operators, referred to in the first sentence of this subparagraph, for
flights for which the aircraft operator uses flight trajectories and fuel flow as in-flight
measured data for the given year to report non- CO₂ aviation effects pursuant to Article
14(5). The contrail forecasting models of aircraft operators referred to in the first
sentence of this subparagraph shall use, as a basis, the same common reference numerical
weather prediction model and weather data as the one used in the monitoring, reporting
and verification tools provided by the Commission referred to in Article 14(5).
The Commission shall publish in the Official Journal of the European Union details of the
average cost difference between fossil kerosene, taking into account incentives from the
price of carbon and from harmonised minimum levels of taxation on fossil fuels, and the
relevant eligible aviation fuels, on a yearly basis for the previous year.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive by establishing the detailed rules for the yearly calculation of
the cost difference referred to in the sixth subparagraph of this paragraph, for the
allocation of allowances for the use of the fuels identified in the first subparagraph of this
paragraph as reported under the implementing act adopted pursuant to Article 14(1),
and establishing the arrangements for taking into account incentives from the price of
carbon and from harmonised minimum levels of taxation on fossil fuels. Those delegated
acts may also lay down further rules and procedures for validation of contrail forecasting
models and their inclusion in flight planning tools.
The Commission shall adopt implementing acts listing business aircraft(s), the flights
performed by which aircraft are considered business flights. Those implementing acts
shall be adopted in accordance with the examination procedure referred to in Article
22a(2).
By 1 July 2032, the Commission shall carry out an assessment regarding the application
of this paragraph and submit the results in a report to the European Parliament and to
the Council. The report may, where appropriate, be accompanied by a legislative proposal
to revise the amount reserved under this paragraph until 31 December 2040, taking into
account changes to the geographic extent of flights subject to the surrender obligation
laid down in Article 12(3), to continue incentivise the use of the fuels identified in the
first subparagraph of this paragraph, in particular the use of renewable fuels of non-
biological origin compliant with Article 25 of Directive (EU) 2018/2001, used in aviation,

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ship. The list established by the Commission pursuant to the first subparagraph shall not
include ports located in a third country for which that third country effectively applies
measures equivalent to this Directive. This includes ports in third countries with whom
an ETS linking agreement is in place.
Those implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 22a(2).
3.
Articles 9, 9a and 10 shall apply to maritime transport activities in the same manner as
they apply to other activities covered by the EU ETS with the following exception with
regard to the application of Article 10.
Until 31 December 2030 31 December 2038, a share of allowances shall be attributed to
Member States with a ratio of shipping companies that would have been under their
responsibility pursuant to Article 3gf compared to their respective population in 2020
and based on data available for the period from 2018 to 2020, above 15 shipping
companies per million inhabitants. The quantity of allowances shall correspond to 3,5 %
of the additional quantity of allowances due to the increase in the cap for maritime
transport referred to in Article 9, third paragraph, in the relevant year. For the years 2024
and 2025, the quantity of allowances shall in addition be multiplied by the percentages
applicable to the relevant year pursuant to Article 3gb, first paragraph, points (a) and (b).
The revenue generated from the auctioning of that share of allowances should be used
for the purposes referred to in Article 10(3), first subparagraph, point (g), with regard to
the maritime sector, and points (f) and (i) The revenue generated from the auctioning of
that share of allowances shall be used for the priority purposes referred to in the first
subparagraph of Article 10(3), points (a) and (d), and for purpose (g) of the purposes
referred to in the second subparagraph of Article 10(3). 50 % of the quantity of
allowances shall be distributed among the relevant Member States based on the share of
shipping companies under their responsibility and the remainder distributed in equal
shares between them.
4.
In the period until 2040, the Commission shall use up to a maximum of 0.5 million
allowances from the Union-wide quantity of allowances referred to in Article 9 to cover
the financing of the implementation of the system in relation to maritime transport
activities.
These allowances shall be auctioned in accordance with Article 10(4) of this Directive,
with proceeds constituting external assigned revenue under Article 21(5) of Regulation
(EU, Euratom) 2024/2509.
Article 3gaa
Reservation and allocation of allowances for the use of sustainable maritime fuels
and zero-emission propulsion technologies
1.
Notwithstanding Article 10(1), for the period from 1 January [2028/first year after the
entry into force of this Directive] to 31 December 2040, a maximum of 110 million of the
Union-wide quantity of allowances referred to in Article 9 shall be reserved for the use of
sustainable maritime fuels or the deployment and operation of zero-emission propulsion

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technologies, including electric and wind-assisted propulsion systems, provided that
those fuels and technologies are used in accordance with the rules laid down in this
Article.
2.
For the purposes of this Article, ‘sustainable maritime fuels’ means:
(a) biogas and advanced biofuels as defined in Article 2, second paragraph, points
(28) and (34), respectively, of Directive (EU) 2018/2001, for which the emission
factor is zero under Annex IV of this Directive or under the implementing act
adopted pursuant to Article 14 of this Directive;
(b) renewable fuels of non-biological origin compliant with Article 25 of Directive
(EU) 2018/2001, for which the emission factor is zero under Annex IV or under
the implementing act adopted pursuant to Article 14 of this Directive;
(c) low-carbon hydrogen and low-carbon fuels as defined respectively in Article 2,
point (11) and (13) of Directive (EU) 2024/1788 for which the emission factor is
zero under Annex IV or under the implementing act adopted pursuant to Article
14 of this Directive..
3.
The allowances referred to in paragraph 1 of this Article shall be reserved, on a
transparent, equal-treatment and non-discriminatory basis, in respect of shipping
companies for the use of sustainable maritime fuels and zero-emission propulsion
technologies on voyages for which allowances have to be surrendered in accordance with
Article 12(3).
Allowances may support the use of sustainable maritime fuels or zero-emission
propulsion technologies by vessels below 5 000 gross tonnage but not below 400 gross
tonnage on voyages from their last port of call to a port of call under the jurisdiction of a
Member State and from a port of call under the jurisdiction of a Member State to their
next port of call, as well as within ports of call under the jurisdiction of a Member State.
4.
Member States shall allocate the allowances reserved under paragraph 1 of this Article to
cover all or part of:
(a) the remaining price differential between the use of sustainable maritime fuels
and the use of maritime fossil fuels;
(b) the cost incurred in deploying and operating zero-emission propulsion
technologies compared to conventional propulsion systems, in proportion to the
amount of emission reductions achieved through the use of these zero-emission
propulsion technologies.
5.
The Commission shall determine the price differential between the use of maritime fossil
fuels and sustainable maritime fuels on the basis of objective and verifiable information,
including, where available, actual transaction prices. Where no representative market
price exists for sustainable maritime fuels, the Commission shall establish reference
prices on the basis of objective and verifiable elements. For maritime fossil fuels, the
Commission shall estimate a weighted average price reflecting the actual mix of maritime
fossil fuels reported under Regulation (EU) 2015/757.

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The cost incurred in deploying and operating zero-emission propulsion technologies
compared to conventional propulsion systems shall be calculated by shipping companies
on the basis of average emissions reduction costs to be determined by the Commission,
taking into account objective and verifiable information.
6.
When allocating allowances in accordance with this Article, Member States shall ensure
that the following origin requirements are fulfilled:
(a) the batches of sustainable maritime fuels shall be produced in the Union, or in
a third country that has an emissions trading system linked with the emissions
trading system established in accordance with this Directive, or in a third country
to which the Union provides support pursuant to Article 25b for the effective
application of greenhouse gas emission pricing with an absolute emissions cap;
(b) the zero-emission propulsion technologies shall be manufactured in the Union,
or in a third country that has an emissions trading system linked with the
emissions trading system established in accordance with this Directive, or in a
third country to which the Union provides support pursuant to Article 25b for the
effective application of greenhouse gas emission pricing with an absolute
emissions cap.
7.
By way of derogation from paragraph 6, Member States shall not apply origin
requirements in respect of sustainable maritime fuels used on eligible voyages between
a port of call under the jurisdiction of a Member State and a port outside the jurisdiction
of a Member State that is identified in the implementing act adopted pursuant to
paragraph 8, first subparagraph.
8.
The Commission is empowered to adopt implementing acts listing ports outside the
jurisdiction of a Member State that align with the guiding principles for support to port
projects in third countries identified in the EU Ports strategy* and that participate in
green shipping corridors with other ports under the jurisdiction of a Member State. The
Commission is also empowered to adopt implementing acts to update that list, as
appropriate. Such implementing acts shall be adopted in accordance with the
examination procedure referred to in Article 22a(2).
9.
The allowances allocated in relation to the use of sustainable maritime fuels and zero-
emission propulsion technologies shall cover:
(a) 55 % of the remaining price differential between the use of maritime fossil
fuels, on the one hand, and biogas and advanced biofuels as defined in Article 2
points (28) and (34), of Directive (EU) 2018/2001, for which the emission factor
is zero under Annex IV to this Directive or under the implementing act adopted
pursuant to Article 14 of this Directive;
(b) 90 % of the remaining price differential between the use of maritime fossil
fuels and renewable fuels of non-biological origin compliant with Article 25 of
Directive (EU) 2018/2001 for which the emission factor is zero under Annex IV to
this Directive or under the implementing act adopted pursuant to Article 14 of this
Directive;

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(c) 80 % of the remaining price differential between the use of maritime fossil
fuels and low-carbon hydrogen and low-carbon fuels as defined respectively in
Article 2, point (11) and (13) of Directive (EU) 2024/1788 for which the emission
factor is zero under Annex IV or under the implementing act adopted pursuant to
Article 14 of this Directive.;
(d) 90 % of the additional cost incurred in deploying and operating zero-emission
propulsion technologies compared to conventional propulsion systems.
Where sustainable maritime fuels or zero-emission propulsion technologies are used on
a voyage between a port under the jurisdiction of a Member State and a port under the
jurisdiction of a Member State located on an island, for which allowances have to be
surrendered in accordance with Article 12(3), the percentages laid down the first
subparagraph, points (a) to (d), shall be increased by 5 percentage points.
Where allowances are to be allocated in relation to sustainable maritime fuels produced
using feedstock that is sourced in the Union, or in a third country that has an emissions
trading system linked with the emissions trading system established in accordance with
this Directive, or in a third country to which the Union provides support pursuant to
Article 25b for the effective application of greenhouse gas emission pricing with an
absolute emissions cap, the percentages laid down in the first subparagraph, points (a)
to (c), shall be increased by 10 percentage points.
Where allowances are to be allocated in relation to the deployment and operation of zero-
emission propulsion technologies that have been fitted on ships in Union shipyards, the
percentage laid down in the first subparagraph, point (d), shall be increased by 5
percentage points.
Where sustainable maritime fuels are used or zero-emission propulsion technologies are
deployed or operated on a voyage between a port of call under the jurisdiction of a
Member State and a port of call outside the jurisdiction of a Member State, the amount of
allowances to be allocated in accordance with this Article shall be multiplied by 50 %, in
accordance with the geographical scope referred to in Article 3ga of this Directive.
10.
On a yearly basis, shipping companies may apply for an allocation of allowances based on
the quantity of sustainable maritime fuels used and the emission reductions achieved
through zero-emission propulsion technologies during the preceding calendar year.
11.
If, for a given year, the demand for allowances exceeds the quantity of allowances
available, the quantity of allowances shall be reduced in a uniform manner for all shipping
companies concerned by the allocation for that year.
12.
The allocation of allowances under this Article may take into account possible support
from other schemes at national, Union, or international level.
13.
The Commission shall publish in the Official Journal of the European Union the following
information:
(a) the average price differential between maritime fossil fuels and sustainable
maritime fuels on a yearly basis for the previous year;

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(b) average emissions reduction costs resulting from the deployment and
operation of zero-emission propulsion technologies every three years for the
previous three years.
14.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive by establishing detailed rules concerning:
(a) the calculation of price differentials, including the establishment of reference
prices where representative market prices are not available;
(b) the determination of objective criteria applicable to eligible zero-emission
propulsion technologies when contributing to greenhouse gas emission
reductions;
(c) the determination of the emissions reductions coming from the deployment
and operation of zero-emission propulsion technologies;
(d) application, allocation, monitoring, reporting and verification procedures as
regards the allocation of allowances in accordance with this Article;
(e) safeguards to prevent overcompensation, including in relation to national,
Union, or international schemes;
(f) establishing safeguards and procedures to ensure a fair and proportionate
distribution of allowances among shipping companies, while taking into account
the need to preserve effective competition and access for small and medium sized
shipping companies.
15.
Member States shall ensure the visibility of funding under this Article in a manner
corresponding to the requirements set out in Article 30m(1), points (a) and (b).
16.
From 1 January 2032, the Commission shall evaluate the application of this Article in the
annual report it is required to submit pursuant to Article 10(5).
___________
* Communication from the Commission from the Commission to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions ‘EU Ports Strategy’
COM(2026) 112 final, Annex 1, ‘B)Guiding principles for support to port projects in third countries.’;
Article 3gab
Reservation and allocation of allowances for the decarbonisation of the maritime
sector in certain least developed countries and small island developing States
An amount of 0.9 million of the Union-wide quantity of allowances referred to in Article
9 shall be reserved for the decarbonisation of the maritime sector in least developed
countries and small island developing States as defined by the United Nations, excluding
those States whose GDP per capita equals or exceeds the Union average. Such amount
shall be reserved on an annual basis until 2035.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive by laying down rules on the use of the reserved allowances

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subsectors, including in third countries, and innovative technological carbon
removal methods, such as direct air capture and storage;
(f) to invest in and accelerate the shift to forms of transport which contribute
significantly to the decarbonisation of the sector, including the development of
climate-friendly passenger and freight rail transport and bus services and
technologies, measures to decarbonise the maritime sector, including the
improvement of the energy efficiency of ships, ports, innovative technologies and
infrastructure, and sustainable alternative fuels, such as hydrogen and ammonia
that are produced from renewables, and zero-emission propulsion technologies,
and to finance measures to support the decarbonisation of airports in accordance
with a Regulation of the European Parliament and of the Council on the
deployment of alternative fuels infrastructure, and repealing
Directive 2014/94/EU of the European Parliament and of the Council, and a
Regulation of the European Parliament and of the Council on ensuring a level
playing field for sustainable air transport;
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(g) to finance research and development in energy efficiency and clean
technologies in the sectors covered by this Directive;
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(h) measures intended to improve energy efficiency, district heating systems and
insulation, to support efficient and renewable heating and cooling systems, or to
support the deep and staged deep renovation of buildings in accordance with
Directive 2010/31/EU of the European Parliament and of the Council ( 11 ),
starting with the renovation of the worst-performing buildings;
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(ha) to provide financial support to address social aspects in lower- and middle-
income households, including by reducing distortive taxes, and targeted
reductions of duties and charges for renewable electricity;
(hb) to finance national climate dividend schemes with a proven positive
environmental impact as documented in the annual report referred to in
Article 19(2) of Regulation (EU) 2018/1999 of the European Parliament and of
the Council ( 12 );
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(i) to cover administrative expenses of the management of the ► M9 EU ETS ◄ ;
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(j) to finance climate actions in vulnerable third countries, including the
adaptation to the impacts of climate change;
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(k) to promote skill formation and reallocation of labour in order to contribute to
a just transition to a climate-neutral economy, in particular in regions most
affected by the transition of jobs, in close coordination with the social partners,
and to invest in upskilling and reskilling of workers potentially affected by the
transition, including workers in maritime transport;
(l) to address any residual risk of carbon leakage in the sectors covered by Annex
I to Regulation (EU) 2023/956 of the European Parliament and of the
Council ( 13 ), supporting the transition and promoting their decarbonisation in
accordance with State aid rules.

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When determining the use of revenues generated from the auctioning of the allowances,
Member States shall take into account the need to continue scaling up international
climate finance in vulnerable third countries referred to in the first subparagraph, point
(j). ▼ M15
Member States shall be deemed to have fulfilled the provisions of this paragraph if they
have in place and implement fiscal or financial support policies, including in particular in
developing countries, or domestic regulatory policies, which leverage financial support,
established for the purposes set out in the first subparagraph and which have a value
equivalent to the revenues referred to in the first subparagraph.
Member States shall inform the Commission as to the use of revenues and the actions
taken pursuant to this paragraph in their reports submitted under Article 19(2) of
Regulation (EU) 2018/1999, specifying, where relevant and as appropriate, which
revenues are used and the actions that are taken to implement their integrated national
energy and climate plans submitted in accordance with that Regulation, and their
territorial just transition plans prepared in accordance with Article 11 of Regulation
(EU) 2021/1056 of the European Parliament and of the Council ( 14 ).
The reporting shall be sufficiently detailed to enable the Commission to assess the
Member States’ compliance with the first subparagraph.
Member States shall determine the use of revenues generated from the auctioning of
allowances referred to in paragraph 2 of this Article, except for the revenues established
as own resources in accordance with Article 311, third paragraph, TFEU and entered in
the Union budget. Member States shall use at least 50% of those revenues, with the
exception of the revenues used for the compensation of indirect carbon costs referred to
in Article 10a(6) of this Directive, or the equivalent in financial value of those revenues,
to support the decarbonisation of ETS sectors, for one or more of the following priority
purposes:
(a) to top-up the support mechanisms in this Directive for reducing climate
impacts from ETS sectors;
(b) to develop clean energies, electricity storage and grids for electricity
transmission and distribution particularly around industrial clusters in view of
the increased electricity demand from industrial decarbonisation projects, as well
as to meet the commitments on renewable energies, on energy efficiency and
inter-connection set out in National Energy and Climate Plans;
(c) to finance investments in industrial decarbonisation and enabling measures
for such decarbonisation, including investments in industrial electrification, clean
industrial production technologies, the capture, use and storage of CO2 and the
development of the CO2 transport network;
(d) measures to decarbonise the maritime sector, including the improvement of
the energy efficiency of ships, ports, innovative technologies and infrastructure,
electrification and sustainable alternative fuels, such as hydrogen and ammonia
that are produced from renewables, and zero-emission propulsion technologies;
(e) measures to invest in innovative technologies to decarbonise aviation,
including support to electrification, actions to reduce the overall climate impacts

39
of aviation and increase production of low-and zero-carbon fuels, and measures
to support the decarbonisation of airports;
(f) measures to support modal shift towards decarbonised forms of transport;
(g) to support competent authorities involved in the collection and disposal of
municipal waste in the implementation of measures in line with the higher steps
of the waste hierarchy as defined in Article 4 of the Directive 2008/98/EC, namely
waste prevention, preparing for reuse, separate collection, sorting and recycling;
(h) circularity measures to reduce emissions from ETS sectors;
(i) to support the development of lead markets for low-carbon and circular
products such as bio-based fertilisers, bio-based chemicals or green steel;
(j) to finance research and development necessary for any of the purposes in
points (a) to (h).
Notwithstanding the first subparagraph, Member States may use the remainder of those
revenues for which they determine the use for the following purposes:
(a) permanent carbon removal methods, such as direct air capture and storage;
(b) measures to avoid deforestation and support the protection and restoration of
peatland, forests and other land-based ecosystems or marine-based ecosystems,
including measures that contribute to the protection, restoration and better
management thereof, in particular as regards marine-protected areas, and
increase biodiversity-friendly afforestation and reforestation, including in
developing countries that have ratified the Paris Agreement;
(c) forestry and soil sequestration;
(d) investments to reduce agricultural emissions linked to more efficient use of
fertilisers in the Union or to greenhouse gases other than CO2, and to support end-
users in the uptake of bio-based, organic and circular fertilisers, in line with the
Fertilizer Action Plan;
(e) measures intended to reduce emissions in buildings, by improving energy
efficiency, district heating systems and insulation, to support efficient and
renewable heating and cooling systems, or to support the deep and staged deep
renovation of buildings in accordance with Directive 2024/1275 of the European
Parliament and of the Council*, starting with the renovation of the worst-
performing buildings;
(f) to provide financial support to address social aspects related to climate change
in lower- and middle-income households;
(g) to cover administrative expenses of the management of the EU ETS;
(h) to adapt to the impacts of climate change;
(i) to finance climate actions in vulnerable third countries, including the
adaptation to the impacts of climate change and measures to transfer
technologies;
(j) to promote skill formation and reallocation of labour in order to contribute to
a just transition to a climate-neutral economy, in particular in regions most
affected by the transition of jobs, in close coordination with the social partners,

40
and to invest in upskilling and reskilling of workers potentially affected by the
transition, including workers in maritime transport;
(k) to address any residual risk of carbon leakage in the sectors covered by Annex
I to Regulation (EU) 2023/956 of the European Parliament and of the Council**,
supporting the transition and promoting their decarbonisation in accordance with
State aid rules.
The use of revenues under the first and second subparagraph shall not prolong reliance
on fossil fuels in power generation and shall be consistent with the transition to a safe
and sustainable low-carbon economy, the objectives of the Union's 2040 climate and
energy policy framework, and the climate-neutrality objective set out in Regulation (EU)
2021/1119.
Member States shall inform the Commission as to the use of revenues and the actions
taken pursuant to paragraphs 3 of this Article in their reports submitted under Article
19(2) of Regulation (EU) 2018/1999 of the European Parliament and of the Council***,
specifying, where relevant and as appropriate, which revenues are used and the actions
that are taken to implement their integrated national energy and climate plans submitted
in accordance with that Regulation, and their territorial just transition plans prepared in
accordance with Article 11 of Regulation (EU) 2021/1056 of the European Parliament
and of the Council****. Member States shall disburse their revenues by the third year after
the year of generation.
The reporting shall be sufficiently detailed to enable the Commission to assess the
Member States’ compliance with paragraphs 3 of this Article, and Article 30m.
___________
* Directive 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy
performance of buildings (recast) (OJ L 1275 8.5.2024, p. 1).
** Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a
carbon border adjustment mechanism (OJ L 130, 16.5.2023, p. 52).
*** Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the
Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No
715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC,
2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council,
Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the
European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1)
**** Regulation (EU) 2021/1056 of the European Parliament and of the Council of 24 June 2021
establishing the Just Transition Fund (OJ L 231, 30.6.2021, p. 1).’
▼ M9
4.
► M15 The Commission is empowered to adopt delegated acts in accordance with
Article 23 of this Directive to supplement this Directive concerning the timing,
administration and other aspects of auctioning, including modalities for auctioning which
are necessary for the transfer of a share of revenues to the Union budget as external
assigned revenue in accordance with Article 30d(4) of this Directive or as own resources
in accordance with Article 311, third paragraph, TFEU, in order to ensure that it is
conducted in an open, transparent, harmonised and non-discriminatory manner. To that
end, the process shall be predictable, in particular as regards the timing and sequencing
of auctions and the estimated amount of allowances to be made available. ◄
Those delegated acts shall ensure that auctions are designed to ensure that:

44
The Commission shall, upon the approval by the ► M9 Union ◄ of an international
agreement on climate change leading to mandatory reductions of greenhouse gas
emissions comparable to those of the ► M9 Union ◄ , review those measures to provide
that free allocation is only to take place where this is fully justified in the light of that
agreement.
▼ M15
1a.
Subject to the application of Regulation (EU) 2023/956, no free allocation shall be given
in relation to the production of goods listed in Annex I to that Regulation.
By way of derogation from the first subparagraph of this paragraph, for the first years of
application of Regulation (EU) 2023/956, the production of goods listed in Annex I to that
Regulation shall benefit from free allocation, in accordance with paragraphs 3a to 3d, in
reduced amounts. A factor reducing the free allocation for the production of those goods
shall be applied (CBAM factor). The CBAM factor shall be equal to 100 % for the period
between the entry into force of that Regulation and the end of 2025 and, subject to the
application of provisions referred to in Article 36(2), point (b), of that Regulation, shall
be equal to 97,5 % in 2026, 95 % in 2027, 90 % 91.5 % in 2028, 77,5 % 81 % in 2029,
51,5 % 59% in 2030, 39 % 48% in 2031, 26,5 % 37,5% in 2032 and 14 %27% in 2033,
15% from 2034 to 2037. From 2034 2038, no CBAM factor a CBAM factor of 0 % shall
apply.
Notwithstanding the second subparagraph, when additional goods are added to the list
in Annex I to Regulation (EU) 2023/956 whose production benefits from free allocation,
for these additional goods the CBAM factor shall be equal to 97,9 % in the first year and
95,8 % in the second year of the next five-year period referred to in Article 11 of this
Directive following their inclusion in that Annex and shall decrease with the same CBAM
factor set out in the second subparagraph in each subsequent year starting with the CBAM
factor of the year 2028. The CBAM factor shall be equal to 100 % in the period between
the start of their inclusion in the Annex and the first year of the next five-year period
referred to in Article 11 of this Directive.
The reduction of free allocation shall be calculated annually as the average share of the
demand for free allocation for the production of goods listed in Annex I to Regulation
(EU) 2023/956 compared to the calculated total free allocation demand for all
installations, for the relevant period referred to in Article 11(1) of this Directive. The
CBAM factor shall be applied in this calculation.
Allowances resulting from the reduction of free allocation shall be made available to
support innovation in accordance with paragraph 8.
With the exception of the allowances reserved for Articles 10cb and 10ce pursuant to
Article 10cc, and of allowances set aside for new entrants pursuant to paragraph 7, first
subparagraph, of this Article, allowances resulting from the reduction of free allocation
shall be auctioned in accordance with Article 10(1).
By 31 December 2024 and as part of its annual report to the European Parliament and to
the Council pursuant to Article 10(5) of this Directive, the Commission shall assess the
carbon leakage risk for goods subject to CBAM and produced in the Union for export to
third countries which do not apply the EU ETS or a similar carbon pricing mechanism.
The report shall in particular assess the carbon leakage risk in sectors to which CBAM
will apply, in particular the role and accelerated uptake of hydrogen, and the

47
2a.
By way of derogation from paragraph 2, third subparagraph, point (d), of this Article, the
maximum annual reduction rate to be applied for the update of the benchmark values for
heat and fuel benchmarks for the period from 2027 to 2030 shall be reduced to a
percentage rate value that makes full use of the additional amount referred to in Article
10a(5a) and ensures that no reduction pursuant to Article 10a(5) applies.
Concerning the update of the benchmark values for heat and fuel benchmarks for the year
2027, the maximum annual reduction rate to be applied shall be reduced to a percentage
rate value that makes use of 40 % of the adjustment pursuant to the first subparagraph
and ensures that no reduction pursuant to Article 10a(5) applies.
2b.
Paragraph 2a shall not apply to free allocations for installations carrying out economic
activities covered by NACE codes 0610, 0620, 1920 and 4950 set out in Annex I to
Regulation (EC) No 1893/2006 of the European Parliament and the Council*.
______
* Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006
establishing the statistical classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 393,
30.12.2006, p. 1, ELI: http://data.europa.eu/eli/reg/2006/1893/oj).
3a.
Starting in 2031, the third to sixth subparagraphs of paragraph 1 of this Article and the
second to fifth subparagraphs of Article 10b(4) shall not apply.
3b.
Operators of installations carrying out activities listed in Annex I shall establish, make
publicly available and submit a plan to invest in decarbonisation in the EU (‘Invest in EU
decarbonisation plan’) for the installations for which they apply for free allocation.
Operators of incumbent installations shall submit the Invest in EU decarbonisation plan
to the competent authority together with information submitted by 30 September 2029
and every five years thereafter pursuant to Article 11(1), second subparagraph.
Operators of new entrants shall submit the Invest in EU decarbonisation plan to the
competent authority together with their application for free allocation in accordance with
the procedures established in delegated acts adopted pursuant to the first subparagraph
of paragraph 1 of this Article.
By way of derogation from the second subparagraph of this paragraph, the Invest in EU
decarbonisation plan may be submitted at a later date, together with activity-level change
reports submitted in accordance with the implementing acts adopted pursuant to
paragraph 21.
The plan referred to in the first subparagraph of this Article shall be consistent with the
climate-neutrality objective set out in Article 2(1) of Regulation (EU) 2021/1119 and
shall include all the following elements:
(a) measures and investments in line with climate neutrality by 2050 at the level
of the installation, considering the role of circularity measures, excluding the use
of carbon offset credits (‘decarbonisation measures and investments’);
(b) intermediate targets to measure, by 31 December 2035 and by 31 December
of each fifth year thereafter, progress made towards reaching climate neutrality
through the measures and investments as set out in point (a).

48
For each five-year period for free allocation referred to Article 11, the decarbonisation
investments referred to in point (a) shall correspond to a volume at least equivalent to
the economic value of 100% of the amount of free allocation under the relevant five-year
period. These decarbonisation investments shall qualify as eligible costs, be implemented
in the EU and lead to significant emissions reduction at the level of the installation within
the relevant five-year period for which that installation is applying for free allocation, in
accordance with the list and criteria established pursuant to paragraph 3e of this Article.
3c.
Upon submission of an Invest in EU decarbonisation plan that has been verified in
accordance with Article 15 and approved by the competent authority, 80 % of the amount
of free allocation to be received under the relevant five-year period shall be allocated
annually to the installation.
Where an installation has received allowances in accordance with the first subparagraph
during each five-year period starting in 2031, but has then relocated or otherwise,
directly or indirectly, transferred, in whole or in part, its relevant production capacity or
the associated economic activity outside the Union, the Member State shall require the
operator to reimburse the received allowances for the relevant allocation period. In the
absence of reimbursement, the Member State shall deduct free allowances in the
following years.
The remaining 20 % of the amount of free allocation for that five-years period shall only
be allocated to the installation after the confirmation, no later than two years after the
end of the relevant five-year period, by the competent authority where the
decarbonisation investments are implemented that the following conditions are met:
(a) the decarbonisation investments were implemented by that time and they
were implemented in the EU;
(b) eligible costs corresponding to a volume at least equivalent to the economic
value of 100% of the amount of free allocation under the relevant five-year period
were invested;
(c) the existing annual reports referred to in Article 15 show that significant
emissions reductions were achieved at the level of the installation in the relevant
five-year period.
Allowances that are not allocated in accordance with the first and third subparagraphs or
that are returned in accordance with the second subparagraph shall be made available
for free allocation in the subsequent five-year period.
By way of derogation from the first subparagraph, where a project that was selected for
the award of support under the Industrial Decarbonisation Bank and Investment Booster
established under Articles 10cc, 10cd and 10ce or the Innovation Fund referred to in
Article 10cb is being implemented in the installation during the five-year period under
which it applies for free allocation, the operator of that installation shall be exempted
from the obligation to establish a plan in accordance with paragraph 3b and shall receive
80 % of the amount of free allocation as referred to in the first subparagraph without
additional verification. By way of derogation from the third subparagraph, the remaining
20 % of the amount of free allocation for the relevant five-year period shall only be
allocated to that same installation, after the launch of the disbursement of support to the
project under the Innovation Fund or upon the start of construction regarding projects
awarded support under the Industrial Decarbonisation Bank or Investment Booster, and

49
after where the competent authority confirms in accordance with the third subparagraph
that eligible costs corresponding to a volume at least equivalent to the economic value of
100% of the amount of free allocation under the relevant five-year period were invested
in the EU.
The requirements set out in paragraph 3b and in the first and third subparagraphs of this
paragraph shall not apply to the 10 % most efficient installations in a sector or subsector
in the Union referred to in the first subparagraph of Article 10a(2) and in respect of the
years used to determine the revised benchmark values pursuant to the third
subparagraph of that Article for the relevant five-year free allocation period, to zero
emissions or low-carbon installations, to installations for which the operators, following
a change in their production processes in accordance with Article 2(1), decide that they
are is to remain within the scope of the EU ETS.
3d.
Operators of installations applying for free allocation in accordance with this Article may
request to form a pool of installations for the purposes of fulfilling jointly the investment
requirements under paragraph 3b, fifth subparagraph.
Operators who wish to form a pool shall apply to the competent authority by submitting
an agreement they concluded for the purpose of fulfilling jointly the investment
requirements (‘joint decarbonisation investment agreement’) specifying the installations
and the period for which they want to form the pool. The joint decarbonisation
investment agreement may relate to five or more calendar years, provided that the
minimum duration of each agreement fully covers the five-year period referred to in
Article 11 for which the installations are applying for free allocation.
The joint decarbonisation investment agreement shall be concluded before submitting an
application for free allocation and shall be submitted to the competent authority together
with information submitted pursuant to the second subparagraph of Article 11(1). After
the joint decarbonisation agreement has been submitted to the competent authority,
other operators may only be added to that agreement under the next five-year period for
free allocation referred to in Article 11.
Where a joint decarbonisation investment agreement is concluded, the decarbonisation
investments referred to in the fifth subparagraph of paragraph 3b shall correspond to a
volume at least equivalent to the economic value of 100% of the amount of free allocation
allocated to all installations that are part of the pool under the relevant five-year period.
3e.
The Commission shall supplement this Directive by providing, in close consultation with
the relevant stakeholders, in the delegated act adopted pursuant to the first
subparagraph of paragraph 1, complementary implementation details as regards the free
allocation provisions set out in paragraphs 3b to 3d of this Article, including:
(a) a list of requirements and eligible costs to qualify as decarbonisation
investments;
(b) rules concerning the qualification as significant emissions reduction;
(c) a methodology for determining whether the measures and investments listed
in the Invest in EU decarbonisation plan lead to significant emissions reduction;
(d) the detailed timeline for the submission of the Invest in EU decarbonisation
plans;

54
Moreover, 5 million allowances from the quantity referred to in Article 3c(5) and (7)
relating to aviation allocations for 2026 shall be made available for innovation support
as referred to in the first subparagraph of this paragraph.
In addition, 50 million unallocated allowances from the market stability reserve shall
supplement any remaining revenues from the 300 million allowances available in the
period from 2013 to 2020 under Commission Decision 2010/670/EU ( 19 ), and shall be
used in a timely manner for innovation support as referred to in the first subparagraph
of this paragraph.
▼ M16
When designing and implementing calls for proposals or competitive bidding under the
Innovation Fund, the Commission shall consider strategic projects recognised in
accordance with a regulation of the European Parliament and of the Council establishing
a framework of measures for strengthening Europe’s net -zero technology products
manufacturing ecosystem, which are deemed to contribute to the objectives of the
Strategic Technologies for Europe Platform (STEP) in accordance with Article 2(4) of
Regulation (EU) 2024/795 of the European Parliament and of the Council ( 20 ). Member
States shall consider providing support from the European Regional Development Fund
and the Cohesion Fund established by Regulation (EU) 2021/1058 of the European
Parliament and of the Council ( 21 ) and the Just Transition Fund established by
Regulation (EU) 2021/1056 to projects in their territory in the context of financial
mechanisms developed under the Innovation Fund, such as the ‘auction -as-a- service’
scheme.
▼ M15
The Innovation Fund shall cover the sectors listed in Annexes I and III, as well as products
and processes substituting carbon intensive ones produced or used in sectors listed in
Annex I, including innovative renewable energy and energy storage technologies and
environmentally safe carbon capture and utilisation (CCU) that contributes substantially
to mitigating climate change, in particular for unavoidable process emissions, and shall
help stimulate the construction and operation of projects aimed at the environmentally
safe capture, transport and geological storage (CCS) of CO
2
, in particular for unavoidable
industrial process emissions, and the direct capture of CO
2
from the atmosphere with
safe, sustainable and permanent storage (DACS), in geographically balanced locations.
The Innovation Fund may also support breakthrough innovative technologies and
infrastructure, including production of low- and zero-carbon fuels, to decarbonise the
maritime, aviation, rail and road transport sectors, including collective forms of transport
such as public transport and coach services.
For aviation, it may also support electrification and actions to reduce the overall climate
impacts of aviation.
The Commission shall give special attention to projects in sectors covered by Regulation
(EU) 2023/956 to support innovation in low-carbon technologies, CCU, CCS, renewable
energy and energy storage, in a way that contributes to mitigating climate change with
the aim of awarding, over the period from 2021 to 2030, projects in those sectors a
significant share of the equivalence in financial value of the allowances referred to in
paragraph 1a, fourth subparagraph, of this Article. In addition, the Commission may
launch, before 2027, calls for proposals dedicated to the sectors covered by that
Regulation.

65
3.
The Innovation Fund shall support projects in the territory of all Member States in sectors
listed in Annex I and III, including products, technologies and processes substituting
carbon-intensive ones; innovative renewable energy and energy storage technologies,
including the manufacturing of clean technologies; electrification; environmentally safe
carbon capture and utilisation (CCU) that contributes substantially to mitigating climate
change, environmentally safe capture, transport and geological storage (CCS) of CO2, in
particular for hard-to-abate industrial emissions; direct atmospheric CO2 capture with
safe, sustainable and permanent storage (DACCS); and breakthrough innovative
technologies and infrastructure, including electrification, production of low- and zero-
carbon fuels, to decarbonise maritime and aviation. For the aviation and maritime
sectors, the Innovation Fund may also support measures to reduce the overall climate
impact, including non-CO2 effects.
4.
The Innovation Fund shall prioritise innovative technologies at a high level of
technological readiness that are not yet commercially viable in line with the Union’s
climate and energy targets as well as circularity objectives.
5.
The Commission shall implement the Innovation Fund in accordance with Regulation
(EU, Euratom) 2024/2509 in direct management or in indirect management through
bodies referred to in Article 62(1)(c) of that Regulation.
The Innovation Fund shall be implemented in synergy with other Union programmes. An
action that has received a Union contribution from another programme may also receive
another contribution under the Innovation Fund. The rules of the relevant Union
programme shall apply to the corresponding contribution and, if it is based on eligible
costs, the cumulative support from the Innovation Fund and that other Union programme
shall not exceed the total eligible costs of the action and may be calculated on a pro-rata
basis.
Support from the Innovation Fund may take any form laid down in Regulation (EU,
Euratom) 2024/2509 where necessary to achieve the objective of this Directive. By way
of derogation from Article 212(3) of Regulation (EU, Euratom) 2024/2509 any revenue
and repayments from instruments deployed under this Article paid back to the
Commission shall be used for the Innovation Fund as external assigned revenue pursuant
to Article 21(5) of Regulation 2024/2509.
In accordance with Article 196(2) of Regulation (EU, Euratom) 2024/2509, financial
contributions may, where necessary for the implementation of projects deemed essential
for security and economic resilience, cover actions that started prior to the date of the
submission of the proposal for those actions.
Where the Commission decides to disburse the Innovation Fund support through
contributions to the ECF InvestEU Instrument, the Innovation Fund support shall be
implemented in accordance with the rules applicable to the ECF InvestEU Instrument.
However, the eligibility of the projects shall be assessed in accordance with this Article.
In the case of grants, projects shall be selected through open calls for proposals in a
transparent manner. In preparing the calls for proposals, the Commission shall strive to
ensure that all sectors are duly covered and that the selection process remains simple
and accessible. The Commission shall take measures to ensure that the calls are

67
Article 10cc
Industrial Decarbonisation Bank
1.
An instrument to support the scaling up and deployment of the technologies, processes
and techniques to decarbonise industries (the ‘Industrial Decarbonisation Bank) is
established starting from 2028. It shall accelerate industrial decarbonisation, including
electrification, within the Union through supporting capital investment, including grid
connection, storage and flexibility costs incurred by projects, and operational
expenditure for emission reductions or removals in stationary installations carrying out
or substituting industrial production processes referred to in Annex I of this Directive,
including in installations for the incineration of waste. In the period from 2028 to 2030,
400 million allowances from the quantity of allowances available pursuant to the second
indent of Article 10a(5b) shall be reserved to support industrial decarbonisation projects
on a ‘first in, first served’ basis in accordance with Article 10cd.
Where the allowances available pursuant to the second indent of Article 10a(5b) are less
than the 400 million allowances referred to in the previous sentence, the difference shall
be covered by allowances set aside pursuant to Article 10a(7).
The allowances shall be available for projects in all Member States. In the first 18 months
of operation, a share of allowances shall be reserved for projects in the group of Member
States with a GDP per capita at market prices below 75 % of the Union average in the
period 2022 to 2024, equal to 100 million allowances. After 18 months this reserved
amount shall be reduced to 60 million.
2.
In 2031, any remaining allowances from the 60 million allowances reserved for projects
in Member States with a GDP per capita at market prices below 75% of the the period
2022 to 2024, shall be used in accordance with Article 10d. Any further remaining
allowances shall be used in accordance with Article 10ce.
In the period from 2031 to 2040, 400 million allowances from Union-wide quantity of
allowances referred to Article 9 shall be reserved to support industrial decarbonisation
projects in accordance with Article 10ce. These allowances shall be auctioned in
accordance with Article 10(4), with proceeds constituting external assigned revenue
under Article 21(5) of Regulation (EU, Euratom) 2024/2509.
Where the amount of allowances referred to in paragraph 1 is fully used in accordance
with Article 10cd, the Commission shall make available support to projects in accordance
with Article 10ce earlier than 2031. The amount of allowances auctioned by Member
States pursuant to Article 9 shall be reduced where necessary to enable this earlier start.
Allowances corresponding to the revenues generated from that amount shall be returned
to Member States starting in 2031 from the allowances reserved in accordance with the
second subparagraph of this paragraph.
3.
Member States may support projects that meet all relevant criteria but cannot be funded
from the relevant award procedure’s budget under the Industrial Decarbonisation Bank
pursuant to Article 10ce by making additional financial resources available. To this end,

68
they shall notify the Commission of their intention to do so before the closure of the
relevant award procedure.
4.
Any revenues generated by activities under Articles 10cc and 10ce shall constitute
external assigned revenue within the meaning of Article 21(5) of Regulation (EU,
Euratom) 2024/2509 to the Industrial Decarbonisation Bank.
5.
To ensure efficient use of Union resources, the Commission shall ensure synergies
between the Industrial Decarbonisation Bank and the European Competitiveness Fund,
particularly its ‘Clean Transition and Industrial Decarbonisation’ window. The
Competitiven ess Seal referred to in Article 8 of Regulation […]/[…] may be awarded to
projects which have been assessed under the Industrial Decarbonisation Bank’s
procedures provided they comply with all quality requirements set out in the documents
related to that procedure.
6.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive with rules on the operation of the Industrial Decarbonisation
Bank, including procedural, organisational, and financial rules to ensure an appropriate
implementation of the Industrial Decarbonisation Bank.
Article 10cd
Investment booster
1.
Until 2030, in line with Article 10cc paragraph 1, the Commission shall support under the
Industrial Decarbonisation Bank projects through allocating allowances based on a fixed
carbon premium to eligible projects within the Union. The Commission shall publish open
invitations for submissions of applications on the basis of which it will pre-select projects.
The allowances shall then be allocated to pre-selected projects in a chronological order
based on the date and time of submission of a completion bond until the amount referred
to in Article 10cc is allocated or the Commission closes the invitation for submissions.
2.
For the allocation of the allowances, including the pre-selection of projects, referred to in
the first paragraph, the Commission shall publish Terms and Conditions developed in
consultation with stakeholders. Those Terms and Conditions shall, in particular, set the
fixed premium rate per tonne of CO2 emissions avoided, eligibility criteria, minimum
requirements as regards emission reductions, mandatory documentation, size of the
completion bond and monitoring and verification requirements. The Terms & Conditions
may also provide mechanisms for sharing possible gains and for ensuring best value for
money, such as a review of the fixed premium rate should there be indications that it is
no longer appropriate in light of market developments and/or differentiated Terms and
Conditions.
3.
The completion bond referred to in paragraph 1 shall be issued by an EU-authorised
financial institution equivalent to a percentage share of the total maximum requested
support. It shall act as a performance guarantee, ensuring the project’s timely

69
implementation. It shall be released in two instalments, with 50% released upon start of
physical construction and 50% upon start of operations.
4.
Upon formal approval of the allocation under this Article, projects shall start physical
construction within a maximum period of 30 months set in the relevant Terms and
Conditions. Start of physical construction in the sense of this Article shall mean the start
of building or assembly works on the project site, excluding preparatory works such as
obtaining permits, conducting Front-End Engineering Design and other studies, or
undertaking site clearance. Following the start of physical construction within the period
set in the first sentence of this paragraph, the Commission shall release half of the
completion bond. In the event a project has not started physical construction within the
period set in the first sentence of this paragraph, the Commission shall call the completion
bond in full. In addition, the support shall be revoked and all entitlements of the
beneficiary of the support shall cease.
5.
Following the start of operations of the project, the beneficiary of the support shall
receive allowances periodically, upon independent verification of emissions avoidance,
for a maximum period of 10 years. The Commission shall release the outstanding half of
the completion bond. In case a project begins physical construction but fails to start
operations, the Commission shall call the outstanding half of the completion bond. In
addition, the support shall be revoked and all entitlements of the beneficiary of the
support shall cease.
6.
The allocation of allowances referred to in the previous paragraph shall correspond to
the verified tonnes of CO₂ emissions avoided, multiplied by the fixed premium rate and
divided by the average of the price of allowances in the auctions carried out in accordance
with the delegated acts adopted pursuant to Article 10(4) of this Directive of the last 6
months preceding the allocation decision. The allocation of allowances under this
paragraph may take into account possible other public support received for the project.
The Commission shall ensure appropriate accounting of the number of available
allowances, before it adopts a decision on the allocation of allowances under this Article.
It shall notably check that the remaining number of allowances reserved pursuant to
Article 10cc is sufficient to cover the estimated demand for the allocation of allowances.
Where more allowances need to be allocated to fulfil commitments taken, the
Commission may take those additional allowances from the amount available pursuant
to Article 10ce(1).
7.
The Commission is empowered to adopt delegated acts in accordance with Article 23 to
supplement this Directive with rules on the operation of the Industrial Decarbonisation
Bank as regards the Investment Booster, including eligibility rules, the pre-selection
procedure and criteria, the allocation of allowances as well as the completion bond.
Article 10ce
Industrial Decarbonisation Bank phase two
1.

70
From 2031, the Commission shall use the revenues from the number of allowances
reserved in line with Article 10cc reserving 400 million allowances to support industrial
decarbonisation projects within the Union through competitive bidding procedures
awarding Carbon Contracts for Difference (CCfD) or carbon premia without prejudice to
the use of other forms of support where appropriate.
2.
Prior to launching a competitive bidding procedure, the Commission shall publish Terms
and Conditions developed in consultation with stakeholders to specify in particular:
eligibility criteria, mandatory documentation, size of the bid bond and the completion
bond as well as monitoring and verification requirements, ensuring transparency.
3.
CCFDs shall support industrial decarbonisation projects by compensating for the
difference between the strike price determined via the competitive bidding procedure
and the prevailing carbon price on the common auction platform over a term of up to 10
years. The instrument shall operate with payments conditional on verified emission
reductions in line with the relevant Terms and Conditions. The Commission may require
beneficiaries to repay excess support if the carbon price surpasses the strike price by
more than a pre-determined percentage, ensuring cost-efficiency. Any such repayment
shall be used under the Industrial Decarbonisation Bank as external assigned revenue
pursuant to Article 21(5) of Regulation (EU, Euratom) 2024/2509.
4.
The Commission may require bidders under the competitive bidding procedure to submit
a bid bond equivalent to a percentage share of the estimated total contract value, issued
by an EU-authorised financial institution, as a guarantee of serious intent. Where a project
is not selected, the bid bond shall be released immediately. The Commission shall call the
bid bond in the event of non-fulfilment of the obligations and commitments outlined in
the bid. Any amount forfeited in accordance with this paragraph shall be used for the
Industrial Decarbonisation Bank Fund as external assigned revenue pursuant to Article
21(5) of Regulation (EU, Euratom) 2024/2509.
5.
The Commission may also set in the Terms and Conditions a maximum period during
which the project’s physical construction shall start and may require beneficiaries to
provide a completion bond issued by an EU-authorised financial institution equivalent to
a percentage share of the total maximum requested support before the CCfD or carbon
premium becomes legally effective. Start of physical construction in the sense of this
paragraph shall mean the start of building or assembly works on the project site,
excluding preparatory works such as obtaining permits, conducting Front-End
Engineering Design and other studies, or undertaking site clearance. In the event a project
has not started physical construction within the maximum period set in the Terms and
Conditions, the Commission shall call the completion bond. In addition, the support shall
be revoked and all entitlements of the beneficiary of the support shall cease.
6.
In accordance with Article 196(2) of Regulation (EU, Euratom) 2024/2509, financial
contributions may, where necessary for the implementation of projects deemed essential
for security and economic resilience, cover actions that started prior to the date of the
submission of the proposal for those actions.
7.

73
At least 80 % of the revenue from allowances referred to in Article 10(1), third
subparagraph, and from allowances covered by a notification pursuant to paragraph 4 of
this Article, and at least 90 % of the revenue from allowances referred to in Article 10(1),
fourth subparagraph, shall be used to support investments in the following:
(a) the generation and use of electricity from renewable sources, including
renewable hydrogen;
(b) heating and cooling from renewable sources;
(c) the reduction of overall energy use through energy efficiency, including in
industry, transport, buildings, agriculture and waste;
(d) energy storage and the modernisation of energy networks, including demand-
side management, district heating pipelines, grids for electricity transmission, the
increase of interconnections between Member States and infrastructure for zero-
emission mobility;
(e) support for low-income households, including in rural and remote areas, to
address energy poverty and to modernise their heating systems; and
(f) a just transition in carbon-dependent regions in the beneficiary Member States,
so as to support the redeployment, reskilling and up-skilling of workers,
education, job-seeking initiatives and start-ups, in dialogue with civil society and
social partners, in a manner that is consistent with and contributes to the relevant
actions included by the Member States in their territorial just transition plans in
accordance with Article 8(2), first subparagraph, point (k), of Regulation
(EU) 2021/1056, where relevant.
At least 95 % of the revenue from allowances referred to in Article 10(1), third
subparagraph, and from allowances covered by a notification pursuant to paragraph 4 of
this Article, shall be used to support investments in the following:
(a) the generation and use of renewable energy sources, including biogas and
biomethane;
(b) the reduction of overall energy use through energy efficiency by at least 20%
in industry, transport and buildings, avoiding any risk of fossil fuel lock-in and
fostering circularity, and the recovery of waste heat from incineration plants for
district heating;
(c) electrification of demand side sectors including industry, buildings and
transport;
(d) the modernisation and expansion of electricity, hydrogen, district heating and
CO2 infrastructure, including energy storage;
(e) industrial decarbonisation, including CCS and CCU and electrification;
(f) support for low-income households, including in rural and remote areas, to
address energy poverty and to modernise their heating systems;
(g) a just transition in carbon-intensive regions in the beneficiary Member States
to support the redeployment, reskilling and up-skilling of workers, education, job-
seeking initiatives and start-ups accelerating the clean energy transition;
(h) the production of affordable low-carbon and bio-based fertilisers.
▼ M9
3.

85
in accordance with Directive 2009/31/EC of the European Parliament and of the Council
*, or on a reciprocal basis from 2031 to a facility with a valid permit for geological storage
in a third country with a greenhouse gas emissions trading system which is linked to the
EU ETS pursuant to Article 25 of this Directive and in respect of which the Commission
adopts an implementing decision confirming sufficient safeguards with respect to the
rules set out in Directive 2009/31/EC are in place and provided the facility is not used
for enhanced oil or gas recovery.
_______
* Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological
storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council
Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No
1013/2006 (OJ L 140, 5.6.2009, p. 114).’
▼ M15
3b.
An obligation to surrender allowances shall not arise in respect of emissions of
greenhouse gases which are considered to have been captured and utilised in such a way
that they have become permanently chemically bound in a product so that they do not
enter the atmosphere under normal use, including any normal activity taking place after
the end of the life of the product.
The Commission shall adopt delegated acts in accordance with Article 23 to supplement
this Directive concerning the requirements for considering that greenhouse gases have
become permanently chemically bound as referred to in the first subparagraph of this
paragraph.
An obligation to surrender allowances shall not arise in respect of carbon dioxide
emissions which are considered to have been captured and utilised in such a way that
they have become:
(a) permanently chemically bound so that they do not enter the atmosphere under
normal use, including any normal activity taking place after the end of the life of
the product, or
(b) chemically bound so that they will be primarily emitted in activities listed in
Annex I and subject to a surrender obligation under Article 12(3).
The Commission shall adopt delegated acts in accordance with Article 23 to supplement
this Directive concerning the requirements for considering that greenhouse gases have
become permanently chemically bound or chemically bound as referred to in the first
subparagraph of this paragraph, and list the types of utilisation that are considered to
meet or not to meet these requirements. Those delegated acts may determine de minimis
thresholds for the risk of not meeting those requirements and may introduce measures,
such as partial surrender requirements, to address carbon leakage risks when these
thresholds are exceeded.
▼ M15
4.
Member States shall take the necessary steps to ensure that allowances are cancelled at
any time at the request of the person holding them. In the event of closure of electricity
generation capacity in their territory due to additional national measures, Member States
may cancel allowances, and are strongly encouraged to do so, from the total quantity of
allowances to be auctioned by them referred to in Article 10(2) up to an amount
corresponding to the average verified emissions of the installation concerned over a

112
shall be reduced to correspond to its share of attributed aviation emissions from flights
which are not subject to the derogations provided for in Article 3c(8) and in paragraph 1,
points (a) to (e) of this Article.’;
3.
By way of derogation from Article 3g, aircraft operators shall not be required to submit
monitoring plans setting out measures to monitor and report emissions in respect of
flights which are subject to the derogations provided for in points (a) and (b) of
paragraph 1 of this Article.
4.
By way of derogation from Articles 3g, 12, 15 and 18a, where an aircraft operator has
total annual emissions lower than 25 000 tonnes of CO
2
, or where an aircraft operator
has total annual emissions lower than 3 000 tonnes of CO
2
from flights other than those
referred to in points (a) and (b) of paragraph 1 of this Article, its emissions shall be
considered to be verified emissions if determined by using the small emitters tool
approved under Commission Regulation (EU) No 606/2010 ( 37 ) and populated by
Eurocontrol with data from its ETS support facility. Member States may implement
simplified procedures for non-commercial aircraft operators as long as such procedures
provide no less accuracy than the small emitters tool provides.
By way of derogation from Articles 3g, 12, 15 and 18a of this Directive, where an aircraft
operator has total annual emissions lower than 25 000 tonnes of CO2, calculated in
accordance with ‘Aviation’, point (j), of Annex I to this Directive, or where an a ircraft
operator has total annual emissions lower than 10 000 tonnes of CO2 subject to
surrender obligation pursuant to Article 12(3) of this Directive, point (b), not taking into
account emissions for which the surrender obligation is considered to be satisfied under
Article 3c(8) or Article 28a(1) of this Directive, its emissions shall be considered to be
verified emissions if determined by using the small emitters tool approved under
Commission Regulation (EU) No 606/2010 * and populated by Eurocontrol with data
from its ETS support facility. Member States may implement simplified procedures for
non-commercial aircraft operators as long as such procedures provide no less accuracy
than the small emitters tool provides.
_____________
* Commission Regulation (EU) No 606/2010 of 9 July 2010 on the approval of a simplified tool developed
by the European organisation for air safety navigation (Eurocontrol) to estimate the fuel consumption of
certain small emitting aircraft operators (OJ L 175, 10.7.2010, p. 25 ELI:
http://data.europa.eu/eli/reg/2010/606/oj.)
5.
Paragraph 1 of this Article shall apply to countries with whom an agreement pursuant
to Article 25 or 25a has been reached only in line with the terms of such agreement.
6.
In addition to the amount reserved for the use of eligible aviation fuels and electricity
pursuant to Article 3c(6), taking into account the provisional restriction of the
geographical scope pursuant to Article 28a(1), point (d), a further maximum 110 million
allowances of the allowances referred to in third subparagraph of paragraph 1 shall be
reserved for the purposes laid down in Article 3c(6) until 31 December 2040.
From 1 January 2029, the amount shall be available for all flights departing from an
aerodrome located in the EEA, with the restrictions for business flights pursuant to
Article 3c(6). From this date, the two last sentences of Article 3c(6), first subparagraph,
shall not apply for the allocation of allowances pursuant to that Article.’;

134
Production of glyoxal and glyoxylic acid Carbon dioxide and nitrous
oxide
Production of ammonia Carbon dioxide
Production of bulk organic chemicals by cracking, reforming, Carbon dioxide
partial or full oxidation or by similar processes, with a production
capacity exceeding 100 tonnes per day
▼ M15
Production of hydrogen (H
2
) ), including production of hydrogen Carbon dioxide
as by-product only, and synthesis gas with a production capacity
exceeding 5 tonnes per day
▼ M4
Production of soda ash (Na
2
CO
3
) and sodium bicarbonate
(NaHCO
3
Carbon dioxide
)
Capture of greenhouse gases from installations covered by this Carbon dioxide
Directive for the purpose of transport and geological storage in a
storage site permitted under Directive 2009/31/EC
Capture of carbon dioxide from activities covered by this Directive
▼ M15
Transport of greenhouse gases for geological storage in a storage Carbon dioxide
site permitted under Directive 2009/31/EC, with the exclusion of
those emissions covered by another activity under this Directive
Transport of carbon dioxide to an installation performing an
activity covered by this Directive, with the exclusion of those
emissions covered by another activity under this Directive
Processing of carbon dioxide from activities covered by this
Directive, including purification, liquefaction, gasification,
temporary storage or other similar services
Carbon dioxide
Utilisation of carbon dioxide from activities covered by this
Directive chemically binding it into other carbon-based molecules
Carbon dioxNo ide
Distribution of synthetic fuels that incorporate carbon from
carbon dioxide captured from activities covered by this Directive
Carbon dioxide
▼ M4
Geological storage of greenhouse gases in a storage site permitted Carbon dioxide
under Directive 2009/31/EC
Aviation
Flights which depart from or arrive in an aerodrome situated in
the territory of a Member State to which the Treaty applies. From
1 January 2029, flights which depart from an aerodrome situated
in the territory of a Member State to which the Treaty applies,
except for aircraft operators operating flights between two
different States with total annual emissions lower than 10 000
tonnes calculated in accordance with this Annex.
This activity shall not include:
(a) flights performed exclusively for the transport, on official
mission, of a reigning Monarch and his immediate family, Heads of
Carbon dioxide

143
▼ M14
Emissions from renewable fuels of non-biological origin using hydrogen from renewable sources
compliant with Article 25 of Directive (EU) 2018/2001 shall be rated with zero emissions for the
aircraft operators using them until the implementing act referred to in Article 14(1) of this
Directive is adopted.
▼ M2
A separate calculation shall be made for each flight and for each fuel.
Reporting of emissions
Each aircraft operator shall include the following information in its report under Article 14(3):
A.
Data identifying the aircraft operator, including:
— name of the aircraft operator,
— its administering Member State,
— its address, including postcode and country and, where different, its contact address in the
administering Member State,
— the aircraft registration numbers and types of aircraft used in the period covered by the report
to perform the aviation activities listed in Annex I for which it is the aircraft operator,
— the number and issuing authority of the air operator certificate and operating licence under
which the aviation activities listed in Annex I for which it is the aircraft operator were performed,
— address, telephone, fax and e-mail details for a contact person, and
— name of the aircraft owner.
B.
For each type of fuel for which emissions are calculated:
— fuel consumption,
— emission factor,
— total aggregated emissions from all flights performed during the period covered by the report
which fall within the aviation activities listed in Annex I for which it is the aircraft operator,
— aggregated emissions from:
— all flights performed during the period covered by the report which fall within the aviation
activities listed in Annex I for which it is the aircraft operator and which departed from an
aerodrome situated in the territory of a Member State and arrived at an aerodrome situated in
the territory of the same Member State,
— all other flights performed during the period covered by the report which fall within the
aviation activities listed in Annex I for which it is the aircraft operator,
— aggregated emissions from all flights performed during the period covered by the report which
fall within the aviation activities listed in Annex I for which it is the aircraft operator and which:
— departed from each Member State, and
— arrived in each Member State from a third country,
— uncertainty.
Monitoring of tonne-kilometre data for the purpose of Articles 3e and 3f
For the purpose of applying for an allocation of allowances in accordance with Article 3e(1) or
Article 3f(2), the amount of aviation activity shall be calculated in tonne-kilometres using the
following formula:
tonne-kilometres = distance × payload
where:
‘distance’ means the great circle distance between the aerodrome of departure and the
aerodrome of arrival plus an additional fixed factor of 95 km; and
‘payload’ means the total mass of freight, mail and passengers carried.

4. The Commission is empowered to adopt delegated acts in accordance with Article 28
to amend Annex II in order to include the well-to-wake emission factors related to any
new sources of energy or to adapt the existing emission factors to ensure consistency
with future international standards or Union legal acts in the field of energy, in
accordance with the best available scientific and technical knowledge.
Article 5
Use of Renewable Fuels of Non-Biological Origin
1. For the calculation of the GHG intensity of the energy used on board by a ship, from
1 January 2025 to 31 December 2033 a multiplier of ‘2’ can be used to reward the ship
for the use of RFNBO. The methodology for this calculation is set out in Annex I.
2. The Commission shall monitor, calculate and annually publish, on the basis of the data
recorded in the FuelEU database referred to in Article 19 and at the latest 18 months after
the end of each reporting period, the share of RFNBO in the yearly energy used on board
by ships falling under the scope of this Regulation.
3. If the share of RFNBO referred to in paragraph 2 is less than 1 % for the reporting
period 2031, a subtarget of 2 % shall apply for such fuels in the yearly energy used on
board by a ship from 1 January 2034, subject to paragraph 5.
4. Paragraph 3 shall not apply where the monitoring results provided for in paragraph
2 that are available before 1 January 2033 demonstrate that the share referred to in
paragraph 2 is more than 2 %.
5. If, based on the monitoring activities referred to in paragraph 2 and following the
Commission’s assessment, there is evidence of insufficient production capacity and
availability of RFNBO to the maritime sector, uneven geographical distribution or a too
high price of those fuels, the subtarget provided for in paragraph 3 shall not apply.
6. The Commission shall adopt implementing acts specifying the criteria for the
assessment provided for in paragraph 5 and the method for calculating the factor of price
difference between RFNBO and fossil fuels used in cell 14 of the table in Part B of Annex
IV. Those implementing acts shall be adopted in accordance with the examination
procedure referred to in Article 29(3).
7. The Commission is empowered to adopt delegated acts in accordance with Article 28
to:
(a) supplement paragraph 5 of this Article with additional elements;
(b) inform about the non-applicability of the subtarget referred to in paragraph 3 of
this Article, resulting from the monitoring referred to in paragraph 2 of this Article or
the assessment referred to in paragraph 5 of this Article.
8. Where the subtarget referred to in paragraph 3 of this Article applies, the Commission
shall adopt, by 31 December 2033, implementing acts to further specify the rules for the
application of paragraph 3 of this Article as regards:
(a) verification and calculation as referred to in Article 16;
(b) applicable flexibility mechanisms set out in Articles 20 and 21;
(c) applicable FuelEU penalties as referred to in Article 23 and Annex IV.