European Commission opens feedback on draft decision approving Sweden's unilateral ETS extension to pulp, paper and board installations

The European Commission published a draft Commission Delegated Decision (DEC_DEL_DRAFT, ISC_WORKFLOW stage) approving Sweden's application under Article 24 of Directive 2003/87/EC to unilaterally bring greenhouse gas emissions from pulp, paper and board installations exceeding the 95% biomass threshold into the scope of the EU ETS. The draft decision was published on 2026-10-19 with a public feedback period open until 2026-11-16.

Article 24 unilateral extensions change the compliance obligations and allowance demand for sectors previously outside ETS1, directly affecting covered installations' cost base and the overall emissions cap dynamics as additional installations are folded into the trading system. This sets a precedent/process template other Member States can follow for biomass-threshold-exceeding installations.

This is a narrow but concrete scope-extension mechanism under Article 24, which allows Member States to unilaterally widen the EU ETS to activities/gases not otherwise covered, subject to Commission approval. For market design, such extensions marginally increase the compliance pool and allowance demand, with second-order effects on EUA liquidity and price formation as new installations begin surrendering allowances. The mechanism itself (inter-service consultation followed by an open feedback window on the draft delegated act, then formal adoption) is a known EU better-regulation workflow; the key tracked uncertainty is the length of the ISC/feedback-to-adoption gap and whether stakeholder feedback alters the draft decision's scope or implementation date for Swedish pulp/paper/board operators.

Article 24 of Directive 2003/87/EC; draft Commission Delegated Decision (EU) …/… on unilateral inclusion by Sweden of pulp, paper and cardboard installation emissions exceeding the 95% biomass threshold under Annex I, point 1

Feedback period closes on draft Commission Delegated Decision · 16 Nov 2026

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