The European Commission is set to introduce a €30bn support scheme linked to the EU Emissions Trading System, aiming to incentivise long-term investments in low-carbon technologies amid global competition and high energy costs.
The European Commission is preparing a fresh package of support worth about €30bn to help energy-intensive industries cope with stubbornly high power costs and intensifying global competition, according to Bloomberg and reports cited by Naftemporiki.
At the heart of the proposal is a new incentive linked to the EU Emissions Trading System, designed to reward companies that commit to investment in carbon-cutting projects. The idea is to use the value of emissions allowances not simply as a levy on pollution, but as a financing tool for industrial decarbonisation.
The Commission is expected to unveil its overhaul of the ETS on 17 July, including a mechanism described as the ETS Investment Booster. Under the plan, selected firms would be able to receive support for up to ten years after their projects begin operating, giving investors a longer planning horizon for capital-heavy technologies such as low-carbon steelmaking, electrification, hydrogen, carbon capture and other emissions-reduction measures.
The funding would draw on 400 million emissions allowances, which would be released gradually as projects come on stream. The amount received by each beneficiary would be tied to the volume of emissions avoided, a fixed green premium per tonne of CO2 and the auction price of ETS permits. That structure is intended to preserve the market signal of the carbon price while still making early-stage industrial decarbonisation projects more bankable.
Support would be allocated on a first-come, first-served basis. Companies would need to provide a bank guarantee, begin construction within 30 months and independently verify the emissions reductions achieved by their projects before payments are made.
The booster is being framed as the first phase of a wider Industrial Decarbonisation Bank, a proposed vehicle that could ultimately mobilise around €100bn from carbon-market related resources. The broader ambition is to help Europe’s heavy industry modernise without losing competitiveness to the United States and China, where producers often face lower energy costs or more generous state support.
The move comes against a backdrop of strong ETS revenues and continuing policy dependence on carbon markets to fund the energy transition. The European Commission says ETS auction income reached €38.8bn in 2024, with €24.4bn paid directly to member states and the rest channelled into climate and energy programmes including the Innovation Fund and Modernisation Fund. The Commission also says the system has raised more than €245bn in total, while its latest climate progress report says ETS-covered emissions from electricity, heat and industrial manufacturing were down 50% by the end of 2024 versus 2005 levels.
For industrial groups, the attraction is not only the size of the proposed package but the duration of support. A decade of visibility on funding can materially improve project economics in sectors where payback periods are long and the upfront cost of new plant or retrofit work remains a major barrier. For policymakers, the challenge will be to strike a balance between using ETS proceeds to accelerate decarbonisation and avoiding a surge of allowance supply that could weaken the carbon price signal.
- https://www.naftemporiki.gr/green/energy/2138135/i-e-e-anoigei-prasino-tameio-30-dis-eyro-gia-ti-viomichania-stirixi-eos-kai-10-chronia/?utm_source=rss&utm_medium=rss&utm_campaign=i-e-e-anoigei-prasino-tameio-30-dis-eyro-gia-ti-viomichania-stirixi-eos-kai-10-chronia – Please view link – unable to able to access data
- https://climate.ec.europa.eu/eu-action/carbon-markets/eu-emissions-trading-system-eu-ets/what-are-ets-revenues-used_en – The European Commission’s Climate Action page details the allocation of revenues from the EU Emissions Trading System (ETS). In 2024, the total auction revenue amounted to €38.8 billion, with €24.4 billion distributed directly to Member States. The remaining funds supported the Innovation Fund, Modernisation Fund, and the Resilience and Recovery Facility. A significant portion of the revenue is dedicated to climate action and energy transition initiatives, as mandated by Article 10(3) of Directive 2003/87/EC. The page also provides examples of specific projects funded by these revenues, such as offshore wind and biogas upgrades in Denmark and deep retrofit projects in Lithuania. ([climate.ec.europa.eu](https://climate.ec.europa.eu/eu-action/carbon-markets/eu-emissions-trading-system-eu-ets/what-are-ets-revenues-used_en?utm_source=openai))
- https://reforms-investments.ec.europa.eu/technical-support-instrument-0/green-transition/support-revised-eu-emissions-trading-system_en?prefLang=ga – The European Commission’s page on the Technical Support Instrument outlines support for the revised EU Emissions Trading System (ETS). The Commission is assisting the implementation of the revised ETS in four Member States: Belgium, Croatia, Finland, and Romania. The revision aligns the ETS with the EU’s climate-neutrality goal by 2050 and the 2030 target of reducing net emissions by at least 55% compared to 1990 levels. The page provides context on the EU’s climate law and the role of the ETS in achieving these objectives. ([reforms-investments.ec.europa.eu](https://reforms-investments.ec.europa.eu/technical-support-instrument-0/green-transition/support-revised-eu-emissions-trading-system_en?prefLang=ga&utm_source=openai))
- https://climate.ec.europa.eu/eu-action/climate-strategies-targets/progress-climate-action/eu-climate-action-progress-report-2025/chapter-2-eu-emission-trading-system_en – Chapter 2 of the EU Climate Action Progress Report 2025 provides insights into the EU Emission Trading System (ETS). By the end of 2024, the ETS had contributed to a 50% reduction in emissions from electricity and heat generation and industrial manufacturing compared to 2005 levels. The report highlights the decrease in emissions due to the increased share of renewables and nuclear in the electricity mix and reduced reliance on fossil fuels. It also notes that the ETS has raised over €245 billion in revenues, with nearly €39 billion in 2024 alone, primarily financing climate and energy measures through national budgets and EU funds. ([climate.ec.europa.eu](https://climate.ec.europa.eu/eu-action/climate-strategies-targets/progress-climate-action/eu-climate-action-progress-report-2025/chapter-2-eu-emission-trading-system_en?utm_source=openai))
- https://climate.ec.europa.eu/news-other-reads/news/2024-carbon-market-report-stable-and-well-functioning-market-driving-emissions-power-and-industry-2024-11-19_en?prefLang=fi – The 2024 Carbon Market Report by the European Commission analyses the EU Emissions Trading System (ETS) in 2023 and the first half of 2024. In 2023, the ETS saw a historic 16.5% reduction in emissions from stationary installations, driven by the power sector. This reduction is attributed to a substantial increase in renewable electricity production, primarily from wind and solar, and a resumed trend of gas replacing coal in power generation. The report also notes that total revenue raised by the ETS to date exceeds €200 billion. ([climate.ec.europa.eu](https://climate.ec.europa.eu/news-other-reads/news/2024-carbon-market-report-stable-and-well-functioning-market-driving-emissions-power-and-industry-2024-11-19_en?prefLang=fi&utm_source=openai))
- https://www.eea.europa.eu/en/analysis/indicators/use-of-auctioning-revenues-generated – The European Environment Agency’s page on the use of auctioning revenues generated under the EU Emissions Trading System (ETS) provides detailed information on the allocation and spending of these revenues. In 2024, the total auction revenue amounted to €38.8 billion, with €24.4 billion distributed directly to Member States. The page outlines how these funds are used for climate and energy-related investments, including renewable energy projects, energy efficiency improvements, and adaptation to climate change. It also highlights the increase in carbon prices since 2017, leading to higher revenues for Member States. ([eea.europa.eu](https://www.eea.europa.eu/en/analysis/indicators/use-of-auctioning-revenues-generated?utm_source=openai))
- https://euraxess.ec.europa.eu/worldwide/africa/news/european-green-deal-eu-modernisation-fund-invests-eu24-billion-accelerate – An article on EURAXESS discusses the European Union’s Modernisation Fund, which has disbursed €2.4 billion to 31 projects in seven beneficiary countries to modernise their energy systems, reduce greenhouse gas emissions, and improve energy efficiency. The investments aim to help these Member States reduce dependency on Russian fossil fuels, meet their 2030 climate and energy targets, and contribute to the EU’s long-term commitment to reaching climate neutrality by 2050. The article provides details on the countries involved and the specific projects funded by the Modernisation Fund. ([euraxess.ec.europa.eu](https://euraxess.ec.europa.eu/worldwide/africa/news/european-green-deal-eu-modernisation-fund-invests-eu24-billion-accelerate?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references a proposal by the European Commission for a €30 billion Industrial Decarbonisation scheme funded through the EU Emissions Trading System (EU ETS). This proposal was first introduced by European Commission President Ursula von der Leyen in March 2026, with the Commission expected to present its wider carbon market reform on July 17, 2026. ([gurufocus.com](https://www.gurufocus.com/news/8962112/eu-plans-30-billion-ets-booster-for-industrial-decarbonization?utm_source=openai)) The article was published on July 19, 2026, indicating timely reporting. However, the source is Naftemporiki, a Greek publication, which may have limited reach and could be considered niche.
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to Bloomberg and reports cited by Naftemporiki. However, the earliest known usage of these quotes cannot be independently verified, raising concerns about their originality.
Source reliability
Score:
6
Notes:
Naftemporiki is a Greek publication, which may have limited reach and could be considered niche. The article references Bloomberg, a major news organisation, which adds credibility. However, the reliance on a single source for the main narrative raises concerns about source independence.
Plausibility check
Score:
8
Notes:
The claims about the European Commission’s €30 billion Industrial Decarbonisation scheme align with other reputable sources, such as Carbon Pulse, which reported on the proposal on July 15, 2026. ([carbon-pulse.com](https://carbon-pulse.com/531853/?site=cpp&utm_source=openai)) The details about the funding mechanism and duration of support are consistent with other reports. However, the article’s reliance on a single source for the main narrative raises concerns about source independence.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on the European Commission’s €30 billion Industrial Decarbonisation scheme, aligning with other reputable sources. However, it relies heavily on a single source, Naftemporiki, which cites Bloomberg, raising concerns about source independence and the originality of the quotes used. The inability to independently verify the quotes further diminishes confidence in the article’s accuracy. Given these concerns, a thorough review and additional verification are recommended before publication.
