Primary Law
3 instrumentsProposed 90% net emissions reduction by 2040 vs 1990 levels. Council agreed on 90% net with maximum carbon capture/sinks counting. EP left demands 95%; EPP/Renew accept 90%; ECR wants 85%. Industry secured CCUS counting provisions. Most consequential climate legislation since Fit for 55.
Extension of carbon pricing to transport and buildings from 2027. Social Climate Fund (€86.7B) to compensate vulnerable households. Omnibus Package I revised some ETS II provisions. Member state preparation uneven. Political sensitivity: directly impacts household energy costs.
Carbon tariff on imports of steel, aluminum, cement, fertilizers, electricity, hydrogen. Transitional reporting since Oct 2023. Full certificates system from Jan 2026. Trade partners (Turkey, UK, China) pushing back. Revenue feeds EU own resources for MFF.