Energy

New EU CO2 auction rules: what changes for EU ETS companies in 2026

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Equipo Editorial CambiosLegales
17 Jun 2026 7 min 8 views

Key data

RegulationDelegated Regulation (EU) 2026/787 of the Commission, of 8 April 2026
Modified regulationDelegated Regulation (EU) 2023/2830
Publication15 June 2026
Entry into forceNot specified in the published text
Affected partiesCompanies subject to EU ETS, industrial installations emitting CO2 and carbon market operators
CategoryEnergy — European carbon market
Official referenceOJ:L_202600787
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Industrial companies subject to the EU ETS system face new rules of the game in the European carbon market. Delegated Regulation (EU) 2026/787, published on 15 June 2026, amends Delegated Regulation (EU) 2023/2830 to update the technical standards governing auctions of greenhouse gas emission rights.

The impact is significant: changes to the auction schedule and management directly affect when and under what conditions installations can acquire emission rights, with immediate consequences for cash flow, financial planning and operating costs.

What does this regulation establish?

Regulation 2026/787 introduces technical modifications to three specific areas of how emission rights auctions operate in the EU ETS:

Modified areaPrevious situation (Reg. 2023/2830)Situation after Reg. 2026/787
Auction schedulePlanning and frequency rules established in 2023Update of timelines and auction dates
Management proceduresOperational procedures set in 2023Modification of auction management procedures
Other operational aspectsTechnical conditions of the 2023 carbon marketUpdate of market operational conditions

The base regulation being modified, Delegated Regulation (EU) 2023/2830, established the technical framework for auctions within the EU ETS. The new regulation does not replace that framework, but updates it in the areas indicated to adapt it to current carbon market conditions.

Economic and operational impact

Changes to the auction schedule and management have direct consequences for the financial operations of affected installations. The most relevant effects are:

  • Market liquidity: Modifications to the auction schedule may alter the supply of available rights in certain periods, affecting liquidity and therefore market prices.
  • Emission rights prices: Any change in the frequency or volume of auctions affects CO2 price formation, with direct impact on operating costs in energy-intensive sectors such as steel, chemicals, cement or electricity generation.
  • Financial planning: Companies managing their exposure to carbon prices through hedging strategies must review their cost models and rights acquisition schedules in light of the new timelines.
  • Compliance strategy: Installations that acquire rights at auction—rather than receiving them free of charge—must adjust their internal purchasing procedures to the new auction times and conditions.

The specific economic impact will depend on each company's position in the market: whether it is a net buyer of rights, whether it uses financial hedges or whether it manages surpluses. In all cases, uncertainty about the new schedule is the main risk to manage in the short term.

Who does it affect?

  • Industrial installations subject to EU ETS: power generation plants, refineries, steel mills, cement plants, chemical plants, glass and ceramic factories, and other installations with an obligation to surrender emission rights.
  • Carbon market operators: intermediaries, traders and financial entities that participate in auctions or in the secondary market for emission rights.
  • CFOs and financial managers of industrial companies managing exposure to carbon prices as part of their cost structure.
  • Sustainability and regulatory compliance managers of business groups with installations in the EU subject to EU ETS.
  • Advisors and consultants specializing in carbon markets, energy and environmental compliance.

Practical example

A Spanish cement plant subject to EU ETS that does not receive sufficient free emission rights to cover its annual production must acquire the remainder at auction or in the secondary market. Under Regulation 2023/2830, this company had planned its auction purchases according to a known schedule. Following the entry into force of Regulation 2026/787, that schedule is modified.

If the company does not update its purchasing plan in accordance with the new auction timelines, it may find itself in one of these situations: buying rights outside periods of greatest liquidity (paying a higher price), or not having the necessary rights at the time of the mandatory annual surrender, which entails economic penalties established in EU ETS regulations.

The immediate action for this company is to review with its risk manager or carbon market advisor the new auction schedule and adjust its acquisition and hedging strategy.

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What should companies do now?

  1. Review the new auction schedule: Identify what dates and conditions change compared to Regulation 2023/2830 and update the plan for acquiring emission rights for the current fiscal year.
  2. Update financial planning: Incorporate the new auction timelines into cost models and EU ETS compliance budgets, especially if the company is a net buyer of rights.
  3. Review hedging strategy: Evaluate whether current financial hedges on carbon prices remain appropriate in light of possible changes in liquidity and prices resulting from the new schedule.
  4. Inform operations and finance teams: Ensure that those responsible for purchasing rights, treasury and regulatory compliance are aware of the changes and their operational implications.
  5. Consult the full regulation: Access the full text of Delegated Regulation (EU) 2026/787 in the EU Official Journal to verify the exact entry into force dates and technical details of the changes.
  6. Seek specialist advice: If the company manages significant volumes of emission rights, consult with a specialist advisor in carbon markets to optimize the compliance strategy under the new rules.

Frequently asked questions

What exactly changes in CO2 auctions with Regulation 2026/787?

Delegated Regulation (EU) 2026/787 amends Regulation 2023/2830 in three aspects: the auction schedule, the procedures for managing them and other operational aspects of the European carbon market. The text does not replace the previous framework, but updates it to adapt it to current EU ETS market conditions.

When does Delegated Regulation (EU) 2026/787 enter into force?

The exact entry into force date is not specified in the information published on 15 June 2026. It is essential to consult the full text in the EU Official Journal to know the specific date and any transitional periods.

Which companies are required to comply with these new rules?

All installations subject to EU ETS: power generation plants, refineries, steel mills, cement plants, chemical plants, glass and ceramic factories, and other industrial sectors emitting CO2 with an obligation to surrender emission rights in the European Union. It also affects carbon market operators participating in auctions.

How can these changes affect the price of CO2 emission rights?

Modifications to the auction schedule and management may alter market liquidity in certain periods. Lower liquidity at specific times may result in greater volatility or higher prices for companies needing to acquire rights, with direct impact on their operating costs.

What risks does failing to adapt the hedging strategy to the new rules pose?

A company that does not adjust its purchasing plan to the new auction schedule may be forced to acquire rights under lower liquidity conditions or at higher prices. In the worst case, if it does not have the necessary rights at the time of the mandatory annual surrender, it is exposed to the economic penalties provided for in EU ETS regulations.

Official source

Consult full regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202600787



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