EU ETS review to trade free permits for local industrial investment

A Commission draft circulated ahead of the formal ETS revision would allow industrial operators to retain free carbon allowances beyond current phase-down schedules, provided they demonstrate qualifying investment in EU-based production. The document, reported by Reuters on 10 June, signals that decarbonisation incentives and competitiveness concerns are being traded off directly inside the permit allocation mechanism: a structural shift from the current phase-out trajectory.

Separately, EU restrictions on Chinese-manufactured inverters moved closer to implementation. Reuters reported on 11 June that the curbs are driven by critical-infrastructure security concerns but that deployment timelines for utility-scale solar could lengthen if European and other-origin supply cannot fill the gap at scale. No quantified deployment impact figure was available in the Reuters item.

In GB, Ofgem published a draft determination on 12 June covering SSEN's 2025 load-related expenditure re-opener under RIIO-ED2. The consultation follows SSEN's October 2025 application and centres on additional network reinforcement costs. Responses are being sought before Ofgem finalises its position.