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policy instrument
EU Emissions Trading System revision for Phases 5 and 6 (integration of permanent carbon removals)
Jurisdiction countryEU
Instrument typecompliance-inclusion
Authoritygovernment
PathwaysBioenergy with carbon capture and storage, Direct air capture
Scopecarbon removal only
Statusproposed
DetailThe European Commission proposed on 17 July 2026 to integrate up to 250 million tonnes of eligible permanent domestic carbon removals into the EU ETS. The EU ETS cap would be increased by a corresponding number of EUAs. Only permanent removals (BioCCS and DACCS) certified under the EU Carbon Removal Certification Framework would qualify. These removals would remain subject to monitoring, reporting
Monetary noteNo funding is attached to the removals element. The wider Proposal includes an Industrial Decarbonisation Bank with an indicated envelope of approximately EUR 100 billion for industrial decarbonisation, which is not removal-specific.
Stated statusproposed
Pathway scopespecific
Pathway noteOnly permanent removals (BioCCS and DACCS) certified under the EU Carbon Removal Certification Framework would qualify for ETS integration
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