European Commission proposes member states allocate 50% of Emissions Trading System (ETS) revenue to decarbonization and include waste treatment in ETS around 2031-2034.

This proposal directly affects companies in the energy, waste treatment, and industrial production sectors in Europe covered by ETS. The mandatory allocation of 50% of ETS revenue to decarbonization creates new financial pressure on emitting companies, while expanding ETS to the waste treatment sector will increase operating costs for waste managers and manufacturing firms. Investors in these sectors will need to recalculate compliance costs from 2031 onward.