REPORT on the proposal for a regulation of the European Parliament and of the Council amending Directive 2003/87/EC as regards revised benchmark values for the heat and fuel benchmarks for the period from 2026 to 2030

Tabled by Jacek Ozdoba

Removed: Allowances Added: (-1) in Article 10a, paragraph 1, subparagraph 6 is replaced by the following: "Allowances that are not allocated due to a reduction of free allocation in … with the third and fifth subparagraphs of this paragraph shall be used Removed: to exempt installations from the adjustment in accordance with paragraph 5 of this Article. Where any such allowances remain, 50 % of those allowances shall be made available to support innovation in accordance with paragraph 8 of this Article. The other 50 % of those allowances shall Added: as follows: (a) one third for the purposes of paragraph 2a of this Article; (b) one third to be auctioned in accordance with Article Removed: 10(1) of this Directive and Member States should use the respective revenues to address any residual risk of carbon leakage in the sectors covered by Annex I to Regulation (EU) 2023/956, supporting the transition and promoting their decarbonisation in accordance with State aid rules. Added: 10 and the revenues generated from the auctioning to be transferred to the Modernisation Fund referred to in Article 10d, with priority being given to support investments aimed at the modernisation and decarbonisation of district heating systems; (c) one third to be transferred to the Innovation Fund referred to in paragraph 8 of this Article.’;"

Wording as published by the EP, in English. PE788.374