BERNSTEIN Utilities Daily – July 9th

Research evidence excerpt

BERNSTEIN Utilities Daily – July 9th

Jorge Alonso Suils +34 915 893 913 jorge.alonso@bernsteinsg.com 9 July 2026

PAN & OTHER EUROPE

• EU plans to impose emissions costs on waste incineration plants (Reuters). Waste incineration plants in Europe will have to

pay for their carbon dioxide emissions under EU plans to add the industry to the ETS. The Commission will propose adding waste

incineration to the ETS, but is still internally debating the timing. "We know that this is not universally supported in Europe, so we're

looking at how to introduce this progressively," one official said. Another official said the Commission was assessing 2031 as a

potential start ‌date, but that this was still being debated. Veolia, which manages more than 90 waste-to-energy plants worldwide,

estimates that being added to the EU ETS would inflate municipalities' running costs by €3.8bn.

• EU plans more flexibility for industry in carbon overhaul (Bloomberg). The EC is due to unveil the EU ETS review on July 17.

To help address concerns from energy-intensive industries over competitiveness, the commission wants to start as soon as next

year a carbon-market fund based on 400m allowances. The so-called ETS Investment Booster will last for three years and will grant

allowances to eligible companies on a first-come, first-served basis. The ETS Investment Booster will be the first stage of Europe’s

planned Industrial Decarbonization Bank, with €100bn in carbon market-based funding. In the second phase, after 2030, the IDB will

use another 400m carbon allowances to support projects. The overhaul of the system will also include a slower emission-reduction

trajectory to allow the issuance of permits after 2039. The commission also confirmed plans to extend the allocation of free carbon