European Environmental Bureau EEB

What the Commission proposes

The European Commission has published an impact assessment and legislative review concerning Directive 2003/87/EC and Decision (EU) 2015/1814 on the EU Emissions Trading System (EU ETS) and the Market Stability Reserve. This initiative serves as the first part of a broad post-2030 framework package aimed at driving competitiveness and cost-effective decarbonisation. It evaluates how stationary installations, aviation, and maritime sectors can deliver necessary emission reductions while ensuring carbon leakage protection and orderly market functioning. The review addresses the shrinking supply of allowances and adapts the system to align with intermediate 2040 targets and 2050 climate neutrality goals.

• Reviews the EU ETS and the Market Stability Reserve to prepare for post-2030 climate targets.
• Assesses pathways toward the 2050 climate neutrality goal and the intermediate 2040 target.
• Focuses on industrial sectors, maritime transport, and aviation to ensure cost-effective decarbonisation.
• Examines carbon leakage protection, free allocation benchmarks, and the funding transition through EU revenues.
• Analyzes market functioning and allowance supply adjustments to prevent trading frictions and price volatility.
• Accompanies related proposals simplifying monitoring, reporting, and verification regulations.

Summary written by AI from the Commission's document.

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1. • the inclusion of different waste management activities in the EU ETS, and changes to point of payment for carbon that is captured and used in non-permanent products, in case municipal waste incineration is included in the EU ETS. 5. PREFERRED POLICY OPTION AND MAIN ENVISAGED IMPACTS Overall, the impact assessment concludes that the EU ETS can be adjusted to contribute cost- effectively to the 2040 domestic climate target, while enabling a more manageable decarbonisation pathway for the EU ETS sectors with more decarbonisation options and increased financial support, and expanding to new sectors to promote effective contribution to the climate ambition by all parts of the economy. It also offers options to ensure effective climate action on the EU’s fair share of international maritime and aviation emissions.

   COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT..., page 4 (EN)

2. 15 The IDB will be placed within the governance of the future European Competitiveness Fund to ensure that both funding instruments are complementary. The European Competitiveness Fund will also support decarbonisation of EIIs. Considering the high investment needs of those sectors both instruments are needed but should be designed as complementary in supporting technological development, types of instruments offered and role in the project’s investment journey. This will be also facilitated by the common governance framework. 16 EASA, European Aviation Environmental Report, 2025 https://www.easa.europa.eu/en/domains/environment/eaer/downloads#download-2025. 17 Source: Figure 76, Direct CO2 emissions from the EU transport sector by mode, Annex 8, Climate Target Impact Assessment, and Section 1.5.5, page 97.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 6 (EN)

3. These priorities include EU climate funds, clean energies and grids, low-carbon transport (especially for maritime and aviation), industrial decarbonisation (including electrification, CCS and clean tech) , waste management decarbonisation, circularity, and supporting research and innovation in these areas. To ensure focused and high- impact spending, Member States are required by the proposal to allocate at least 50% of ETS revenues to these priority areas. This binding minimum will help correct the current imbalance in spending, where critical sectors receive disproportionately low funding despite their significant role in achieving emission reductions. The proposal will ensure full alignment with climate neutrality by prohibiting investments that undermine the EU’s long-term climate goals.

   Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE..., page 22 (EN)

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What the Commission proposes

The European Commission is preparing an initiative to establish common Union minimum performance standards for data centres located in its territory. Building on existing reporting and rating schemes under the Energy Efficiency Directive, the proposed regulation aims to phase out unsustainable practices and technologies in new or retrofitted facilities. The initiative seeks to address rising energy and water consumption, limited waste heat reuse, and regulatory fragmentation across Member States. An impact assessment is planned for late 2026, with a legislative proposal anticipated in the second quarter of 2027.

• Establish common EU minimum performance standards for data centres regarding energy efficiency, water use, waste-heat reuse, and grid services.
• Form the third step in the EU sustainability framework for data centres, following the 2024 reporting scheme and the 2026 rating scheme.
• Prevent divergent national approaches and reduce regulatory fragmentation across Member States.
• Improve sector competitiveness and reduce operational costs by cutting energy and water waste.
• Support energy system integration by aligning data centre operations with power grid and heat network needs.
• Prepare an impact assessment in Q4 2026 to support the drafting of the legislative proposal for Q2 2027.

What is asked: The consultation aims to collect in-depth evidence, information, data and feedback from stakeholders on the need for and feasibility of minimum performance standards for data centres in the EU, the most appropriate way to establish them, which indicators should have standards, and what thresholds should be set.

Summary written by AI from the Commission's document.

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1. This sector touches upon two important EU objectives, namely the Union’s technological sovereignty and the Union’s energy resilience and security. Expanding computing capacities and increasing the number of data centres on the Union’s territory is essential, but it also poses challenges, not only in terms of increasing energy consumption but also for electricity grids, carbon emissions and environmental resources such as water. In response, the EU’s digital strategy emphasises the need for highly energy-efficient and sustainable data centres. As highlighted by the Draghi report on EU competitiveness, using energy more efficiently makes it possible to cut costs, which is vital for the competitiveness of European industries. The Energy Efficiency Directive (EU) 2023/1791 (EED) requires to promote energy efficiency and sustainability in data centres.

   Establishment of common Union minimum performance standards for..., page 1 (EN)

2. Problem the initiative aims to tackle As highlighted by the Draghi report and the AI Continent Action Plan, expanding data centre capacity in the EU is essential for fostering AI innovation, accelerating digitalisation, boosting EU competitiveness across industries and supporting a mature data economy. To ensure this, several sustainability challenges need to be tackled: 1. rising energy and water consumption 2. limited waste heat reuse and energy system integration 3. the lack of a framework guiding data centres’ sustainability efforts 4. the lack of regulatory convergence between countries 5. competitiveness and affordability concerns 6. barriers to innovation and uptake of clean technologies Basis for EU action (legal basis and subsidiarity check) Legal basis The legal basis for this initiative is Article 194(2) of the Treaty on the Functioning of the European Union.

   Establishment of common Union minimum performance standards for..., page 1 (EN)

3. 2 EU action is needed to activate, coordinate and harmonise efforts across different EU countries. The proposal would provide added value by creating an EU framework that would phase out unsustainable practices and technologies in European data centres and avoid divergent or non-complementary national approaches weakening the EU’s competitiveness. Furthermore, minimum performance standards at EU level would build on and complement the reporting scheme for data centres adopted in 2024 and the rating scheme for data centres in the EU adopted in 2026. A study procured by the Commission in 2025 confirmed that setting common EU-wide minimum performance standards can help address inefficient facilities without limiting innovative or high-performance ones and guide investment while supporting the EU’s climate and energy objectives. B.

   Establishment of common Union minimum performance standards for..., page 2 (EN)

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What the Commission proposes

The European Commission is preparing a new EU Atlantic Maritime and Macro-regional Strategy to be adopted by June 2027, following a request from the European Council. Building on the existing Atlantic Maritime Strategy and Action Plan, the initiative aims to provide a broader, integrated territorial framework to address shared challenges and opportunities across the Atlantic region. It seeks to improve policy coordination, foster innovative solutions, strengthen multi-level governance, and increase the political weight of Atlantic priorities. The strategy targets the four EU Atlantic Member States and will be established through a non-legislative Communication without an impact assessment.

• Development of a new EU Atlantic Maritime and Macro-regional Strategy by June 2027.
• Builds on and integrates the Atlantic Maritime Strategy and the Atlantic Action Plan.
• Aims to improve policy coordination across EU, national, and regional levels and funding instruments.
• Restricted in scope to the four EU Atlantic Member States: France, Ireland, Portugal, and Spain.
• Will incorporate a monitoring framework integrated into the Commission's biennial reports on macro-regional strategies.
• Takes the form of a non-legislative Communication from the Commission without requiring an impact assessment.

What is asked: Respondents are asked to provide views on the Commission's understanding of the problem and possible solutions, and to share any relevant information they may have regarding the Atlantic maritime and macro-regional strategy initiative.

Summary written by AI from the Commission's document.

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1. 2 • facilitating knowledge exchange and the transfer of good practices and solutions; • strengthening multi-level governance and stakeholder participation; • increasing the strategic visibility and political weight of Atlantic priorities in the European policy agenda. The initiative aims to provide a more joined up and integrated framework for cooperation. It will enable participating countries and regions to tackle common challenges and harness shared opportunities that support sustainable, resilient and inclusive development across the Atlantic region.

   Communication from the Commission to the European Parliament, the..., page 2 (EN)

2. A. Political context, problem definition and subsidiarity check Political context In its conclusions of 18 December 2025, the European Council invited the European Commission, in cooperation with Member States, to develop an EU Macro-regional Strategy for the Atlantic by June 2027, considering the existing Atlantic Maritime Strategy and the Atlantic Action Plan. In response, the purpose of this initiative is to develop an Atlantic Macro-regional Strategy. It builds on the well- established and successful framework for cooperation between the four Atlantic Member States provided by the EU Atlantic Maritime Strategy since 2011, which has focused on developing a sustainable blue economy and related thematic priorities.

   Communication from the Commission to the European Parliament, the..., page 1 (EN)

3. Target audience The consultation is open to all stakeholders concerned by this strategy, including Member State authorities, international and cross-border stakeholders involved in Atlantic-related cooperation, regional and local governments, EU programme managing authorities, economic and social partners, the blue economy sector, energy and transport operators, research and innovation organisations, civil society groups and the public. The Commission invites participation from all the regions and stakeholder groups concerned.

   Communication from the Commission to the European Parliament, the..., page 3 (EN)

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