# EU ETS Directive (2003/87/EC)

Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC

- Status: Amendments pending
- Legal order: European Union
- Legal area: Climate, CO₂ and energy
- OJ L 275, 25.10.2003, p. 32, as amended (inter alia Directives (EU) 2023/958 and 2023/959, Regulation (EU) 2024/795)
- Business profile: Smelting, Semi-fabrication, Recycling

## In brief

Covers the production of primary aluminium and alumina (CO2, PFC), secondary aluminium and the production or processing of non-ferrous metals where combustion units exceed 20 MW, as well as metal ore roasting and sintering. Lays down free allocation, surrender of allowances and penalties.

## Key obligations

- operation of installations listed in Annex I only under a greenhouse gas emissions permit (Art. 4, Art. 6)
- monitoring of emissions and annual report in accordance with Implementing Regulation (EU) 2018/2066 (Art. 14(3))
- verification of the report by 31 March; without a satisfactory verification, further transfers of allowances are prohibited (Art. 15)
- surrender of allowances corresponding to the emissions of the previous year by 30 September (Art. 12(3))
- allocation for CBAM goods (aluminium) reduced by the CBAM factor: 97.5% in 2026 … 14% in 2033, no allocation from 2034 (Art. 10a(1a))
- allocation reduced by 20% where the recommendations of the energy audit with a payback period of ≤ 3 years are not implemented (Art. 10a(1), third subparagraph)

## Competent authority

KOBiZE (reports, allocation), authority competent to issue the integrated or emission permit (permit), authorities of the Inspection for Environmental Protection (penalties)

## Penalties

Excess emissions penalty of EUR 100/t CO2e, indexed to the HICP; payment does not release from the surrender obligation; publication of the names of operators in breach (Art. 16(2)–(4))

## Entry into force

25.10.2003

## Application

Phase IV 2021–2030 (allocation period 2026–2030); CBAM factor from 2026; surrender by 30 September from 2024

## Key dates

- 01.01.2026: start of the 2026–2030 allocation period; CBAM factor 97.5%
- 29.06.2026: publication of the revised benchmark values for 2026–2030 (Implementing Regulation (EU) 2026/1412)
- 30.09.2026: surrender of allowances for 2025 emissions
- 31.03.2027: verified emissions report for 2026
- 01.01.2028: CBAM factor 90%
- 01.01.2030: CBAM factor 51.5%
- 01.01.2034: no free allocation for the production of CBAM goods

## Pending changes

COM(2026) 616 of 17.07.2026, procedure 2026/0212(COD) – EP: ENVI committee, awaiting committee decision (indicative plenary 14.12.2026); COM(2026) 619, procedure 2026/0211(COD) – ENVI report A10-0276/2026 of 19.10.2026, before the plenary vote.

## Related acts

- [Free allocation (Delegated Regulation 2019/331) and benchmarks 2026–2030](https://igmnir.org/dane/prawo/en/eu-ets-far/)
- [Monitoring and reporting of emissions (Implementing Regulation 2018/2066, MRR)](https://igmnir.org/dane/prawo/en/eu-ets-mrr/)
- [Commission Guidelines – compensation for indirect emission costs (ETS post-2021)](https://igmnir.org/dane/prawo/en/eu-ets-pomoc-kp/)
- [EU ETS review – proposal COM(2026) 616](https://igmnir.org/dane/prawo/en/eu-ets-przeglad/)
- [CBAM (Regulation 2023/956 as amended by Regulation 2025/2083)](https://igmnir.org/dane/prawo/en/eu-cbam/)
- [Act on the emission allowance trading system](https://igmnir.org/dane/prawo/en/pl-ets/)
- [Energy Efficiency Directive (2023/1791, EED)](https://igmnir.org/dane/prawo/en/eu-eed/)

## Official sources

- [Text of the act](http://data.europa.eu/eli/dir/2003/87/oj)
- [Consolidated text](https://eur-lex.europa.eu/legal-content/PL/TXT/?uri=CELEX:02003L0087-20240301)
- [Directive (EU) 2023/959 – ELI](http://data.europa.eu/eli/dir/2023/959/oj)
- [OEIL – procedure 2026/0212(COD)](https://oeil.secure.europarl.europa.eu/oeil/en/procedure-file?reference=2026/0212(COD))

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Register as of: 22.10.2026. The official text of the act prevails. IGMNiR. On the website: https://igmnir.org/en/law/#akt-eu-ets