EU negotiator proposes directing 75% of ETS revenue to industrial decarbonisation

On September 11, Reuters reported that European Parliament lead negotiator Peter Liese proposed requiring EU governments to spend 75% of emissions-trading revenue on decarbonising covered industries, above the European Commission’s proposed 50%. His draft would reduce the ETS emissions cap by 3.4% annually from 2031 and 2.3% from 2036, compared with the Commission’s proposed 3.7% and 1.7%, and Parliament and member-state positions are expected in December before final negotiations. Corporate counsel should model the proposal as a potential reallocation of compliance costs and public support, not as enacted law, and should preserve flexibility in long-term carbon-price and capital-investment assumptions. Law firms advising industrial clients will need to connect ETS exposure, state-aid opportunities and project-finance conditions rather than treating carbon compliance as a standalone reporting matter.