Commission proposal Parliament position Council position (closely aligned to Commission Proposal
Emissions 2030 vs 2005 61% lower emissions by 2030 vs. 2005 63% lower emissions by 2030 vs. 2005 Same as Commission
Linear Reduction Factor (LRF) 4.2% LRF (percentage by which cap on emissions drops each year) 4.4% LRF in 2024 & 2025, 4.5% LRF from 2026 and 4.6% from 2029 Same as Commission
Rebasing (removal of EUAs from market to backdate changes to 2021) 117 million EUAs removed from market when legislation is approved (likely 2024) 70 million EUAs removed from market in 2024, 50 million in 2026 Same as Commission
MSR  The Commission proposes a ‘buffer zone’ of 833-1096 million EUAs, within which withdrawals from the market will be set at the difference between the TNAC and 833 million. The Parliament proposes a more bullish buffer of 700-921 million EUAs, dropping in line with the yearly reduction in EUAs from the market (Linear Reduction Factor, likely 4.2-4.4% a year) after 2025. Same as Commission
Intervention against price spikes
Article 29a

Agreement: if EUA prices reach 2.4x the average closing price for the preceding two years, 75 million EUAs will be released into the market. 

No change.
If the average EUA price is more than 3x the average price of EUA during preceding two years, for 6 consecutive months
Market intervention: Trigger = Price for 6 consecutive months is 2x average price in previous 2 years. If triggered, meeting to be convened to determine if intervention is necessary.  The Council has agreed to make releasing MSR volumes via Article 29a (mechanism to address excessive price fluctuations) more automatic – 2.5x the average price in the two preceding years. Before, the proposal was to intervene if the market could be assessed to be driven higher by non-fundamental factors (i.e. speculators) – this assessment would be done by the Commission. Now it seems to be a more automatic process without the Commission having qualitative oversight. This is closely aligned with the Parliament’s position on Article 29a.
The two-year period ends before the first month of the period of six calendar months over which the trigger level has to be met.
Injection of 100m allowances from MSR subject to commission decision Final document confirms an automatic release of 70m allowances over three months in case the Article is triggered.
CBAM Aluminium, iron and steel, energy, cement, fertilisers to be covered by CBAM

Phase in with no tax charged over 2023-25

Phase out of free allocation of EUAs 2026-36

Same industries as Commission proposal, and Organic Basic Chemicals, Plastics, Hydrogen

Start 2025 but free allocation phased out 2027-32

Same as Commission
Maritime  100% compliance in 2026, phased in 2024-26

20% emissions covered in 2023, 45% in 2024, 70% in 2025, 100% in 2026.

100% compliance from 2024 Same as the Commission
Aviation  Full derogation to extra-EEA flights flights from EEA to third countries to be covered by EU ETS, with a deduction for CORSIA Same as the Commission
free allocation phaseout by 25% in 2024, 50% in 2025, 75% in 2026 and 100% in 2027 free allocation phaseout by 50% in 2024 and 100% in 2025 Same as the Commission
Benchmarks Benchmark reduction rate 2.5% vs. current 1.6% per year. Minimum benchmark is 0.2% Benchmark reduction to be minimum 0.4% – note the hot metal benchmark reduces by 0.4% at present

 

Same as commission
Starting in 2024 to 2040, adjustment should be 4-50% No change to the valuest until 2026, but 2026-2030 adjustment should be between 8-50% Same as commission
Reduction of free allocations by 10% p.a. Over the course of 10 years starting in 2026 Reduction of free allocations by 7% in 2028, 15% in 2029, 19% in 2030 and 25% in 2031 – reaching zero in 2032 Reduction of free allowances by 5% starting in 2025 until 2028, 7.5% 2029-2030, 10% from 2031-32, 15% 2033-34 and 20% in 2035
ETS for buildings and road transport  Separate EU ETS for buildings and transport from 2026 – emission report starts in 2024 Industrial heating and non private road transport fuels in 2025 and reporting starts in 2023 Separate EU ETS for buildings and transport from 2027 – emission report starts in 2024 to 2026 without associated compliance obligation