Where the law stands, Dossier 2025/0418(COD)
Establishing the Temporary Decarbonisation Fund
Ordinary legislative procedure (COD): Parliament and the Council decide together as equals. · First reading
A proposed EU law. Parliament and the Council must agree on the same text: Parliament adopts its position, then negotiates with the Council.
Where it stands
Negotiations with the Council
Parliament adopted its position on 15 September 2026. Negotiations with the Council on a common text are under way.
- Referred to committee(done) 12 February 2026
- Committee work(done) Report adopted 6 July 2026
- Tabled for plenary(done) 15 July 2026
- Plenary vote(done) Adopted 15 September 2026
- Negotiations with the Council Talks opened 15 September 2026
- Published as law(to come)
Decided in plenary
15 September 2026 · decision 2
Climate & environment, New EU law
Establishing the Temporary Decarbonisation Fund
Passed 433 for · 97 against · 146 abstained by a large majority
AI summary:Parliament set out its position on a proposed regulation that would create a Temporary Decarbonisation Fund to support operators in energy-intensive sectors facing a remaining carbon leakage risk, complementing the EU Emissions Trading System and the Carbon Border Adjustment Mechanism.
What changed
Latest Tabled for plenary → Adopted by Parliament
AI summary:The Commission must document assigned revenue and disbursements annually and report on the Fund's performance by 31 March 2028. The Commission may propose extending the Fund after 31 December 2029, adapting its scope or financial envelope, or introducing a transaction fee. The Commission must present a report by 31 December 2030 on the Fund's performance and expenditure. The other changes are formal or wording: citations and cross-references are updated, a consultation reference is dropped, and punctuation is adjusted.
Committee draft → Tabled for plenary
AI summary:The Fund's scope shifts to exported goods and downstream operators, with new eligibility and conditionality rules. Support is tied to decarbonisation, labour, tax and sourcing conditions, and application and disbursement procedures change. New reporting, review and oversight duties are added, including a budgetary assessment. Recitals now mention negative emissions, carbon leakage prevention and existing EU ETS cost-alleviating instruments. The other change is formal: a consultation of the Committee of the Regions is added.
Who works on it
- Lead committee
- Environment, Climate and Food Safety
- The MEP who drafts the report and negotiates it on behalf of the committee.
- Pascal Canfin (Renew)
- An MEP who follows a report on behalf of their own group when another group holds the rapporteur.
- Michalis Hadjipantela (EPP), Mohammed Chahim (S&D), Jorge Buxadé Villalba (Patriots), Stefano Cavedagna (ECR), Sara Matthieu (Greens), Lynn Boylan (The Left), Anja Arndt (ESN)
- Committees giving an opinion
- Industry, Research and Energy· rapporteurMassimiliano Salini (EPP)
The text, version by version
Newest first.
Adopted by Parliament· 15 Sept 2026
AI summary:Parliament's amended version of the proposed regulation establishing the Temporary Decarbonisation Fund provides temporary financial support in 2027-2029 to operators and downstream operators in carbon-intensive sectors facing a remaining risk of carbon leakage on exports.
Tabled for plenary· 15 Jul 2026
AI summary:Parliament's amended version of the Commission proposal for a regulation establishing the Temporary Decarbonisation Fund. The Fund would give temporary financial support in 2027-2029 to operators and downstream operators in carbon-intensive sectors facing a remaining risk of carbon leakage, financed from 25% of revenues from the sale of CBAM certificates.
Committee draft· 7 Apr 2026
AI summary:The rapporteur's draft report sets out Parliament's first-reading position on the proposed regulation establishing the Temporary Decarbonisation Fund, which supports carbon-intensive sectors facing the remaining risk of carbon leakage.
Committee opinions: Opinion (BUDG), Draft opinion (ITRE), Opinion (ITRE), Draft opinion (BUDG)
Timeline
Newest first.
Negotiations with the Council 1 step
15 September 2026
Parliament opened negotiations with the Council
After its vote Parliament sent the file back to committee, so that its negotiators can seek a compromise text with the Council (in “trilogues”).
Plenary stage 5 steps
15 September 2026
Plenary vote
Sitting of 15 Sept 2026 Adopted text TA10-0277/2026Report A10-0202/2026
15 September 2026
82 amendments tabled for the plenary vote
Groups propose changes to the tabled text; each is voted on before the final vote.
14 September 2026
Debated in plenary
MEPs debated the text in the chamber ahead of the vote.
Sitting of 14 Sept 2026 Council / Commission text C10-0093/2026Council / Commission text C10-0352/2025Council / Commission text C10-0353/2025Report A10-0201/2026Report A10-0202/2026Report A10-0230/2026
9 September 2026
26 amendments tabled for the plenary vote
Groups propose changes to the tabled text; each is voted on before the final vote.
Amendments 83–87Amendments 88–93Amendments 94–100Amendments 101–108
15 July 2026
Report tabled for plenary
This is the text all MEPs vote on. Political groups can still table amendments to it.
Committee stage 6 steps
6 July 2026
Committee vote: report adopted
ENVI (Environment, Climate and Food Safety) voted on the amendments and adopted the report that goes to plenary.
24 June 2026
ITRE (Industry, Research and Energy) adopted its opinion
The opinion is attached to the report for the lead committee to consider.
23 June 2026
BUDG (Budgets) adopted its opinion
The opinion is attached to the report for the lead committee to consider.
8 May – 19 May 2026
Amendments tabled in committee (3 batches)
Members of ENVI (Environment, Climate and Food Safety) proposed changes to the draft.
Amendments in committee (ENVI)Amendments in committee (ENVI)Amendments in committee (ENVI)
7 April 2026
Draft report published
The rapporteur’s first text in ENVI (Environment, Climate and Food Safety). Members can table amendments before the committee votes.
12 February 2026
Referred to the ENVI (Environment, Climate and Food Safety) committee
The lead committee prepares the report; ITRE (Industry, Research and Energy) gives an opinion.
Official record: Legislative Observatory, 2025/0418(COD)