This Week in Energy — Brussels (#25, 2026)
Commission funds €2.5bn in clean energy via Modernisation Fund; State aid for Spanish transport fuels; Free allocation benchmarks revised under EU ETS; New rules for fluorinated gases; Parliament committees advance grid permitting reports.
June 28, 2026 to July 04, 2026
Commission funds €2.5bn in clean energy via Modernisation Fund; State aid for Spanish transport fuels; Free allocation benchmarks revised under EU ETS; New rules for fluorinated gases; Parliament committees advance grid permitting reports.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
EU ETS Modernisation Fund: €2.5 billion allocated to energy projects in 11 Member States
The European Commission and European Investment Bank announced on 1 July the disbursement of €2.5 billion from the Modernisation Fund, supporting 51 energy projects across 11 Member States, including Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, and Slovenia. These investments are financed by revenues from the EU Emissions Trading System (EU ETS). Projects range from decarbonising district heating and electrifying public transport to modernising electricity grids and developing battery storage. Since January 2021, the Fund has distributed €23.2 billion. The disbursement aligns with Member States' National Energy and Climate Plans and supports EU climate targets.
Commission approves €402 million Spanish State aid for road transport amid increased fuel costs
On 28 June, the Commission endorsed a €402 million Spanish State aid scheme for road transport companies affected by fuel price spikes resulting from the Middle East crisis. The support, delivered as direct grants, is approved under the Middle East Crisis Temporary State Aid Framework (METSAF), adopted by the Commission on 29 April 2026. Beneficiaries include both those eligible under an existing diesel tax refund and non-eligible firms, with aid covering up to 70% of additional fuel costs for specified periods. The METSAF is intended to allow targeted relief in exposed sectors until end-2026.
EU Legislation (Official Journal)
Commission Implementing Regulation (EU) 2026/1412 revises EU ETS benchmarks for free allocation, 2026-2030
Commission Implementing Regulation (EU) 2026/1412, adopted 26 June and published 29 June, determines revised benchmark values for the free allocation of emission allowances under Directive 2003/87/EC for 2026-2030. The new benchmarks draw on efficiency data from 2021-2022, setting annual reduction rates per sector in line with updated climate targets in Directive (EU) 2023/959. The regulation harmonises allocation for 54 industrial sectors, reflecting changes to EU climate law, monitoring and reporting standards, and ETS scope.
Commission Implementing Regulation (EU) 2026/1444 repeals legacy leak checking rules for fluorinated gases
Commission Implementing Regulation (EU) 2026/1444, adopted 2 July, repeals Regulations (EC) No 1497/2007 and (EC) No 1516/2007 covering leakage checks for equipment with fluorinated greenhouse gases. Citing advances in harmonised EU law and updated technical standards under Regulation (EU) 2024/573, the Commission concluded that the legacy rules are redundant and the repeal reduces administrative burdens. The repeal takes effect 20 days after publication.
Council Decision (EU) 2026/1440 allows reduced electricity tax for ship power supply in German ports
Council Implementing Decision (EU) 2026/1440, adopted 25 June and published 30 June, authorises Germany to apply a reduced taxation rate to electricity supplied to berthed vessels (excluding private craft) until 31 December 2029, in accordance with Directive 2003/96/EC. The measure aims to promote shore-side electricity use as an alternative to onboard fuel combustion.
Commission Implementing Decision (EU) 2026/1382 sets HFC reference values for 2027–2029 under F-gas rules
Published 30 June, Commission Implementing Decision (EU) 2026/1382 determines company-specific reference values for hydrofluorocarbon quotas, as mandated by Regulation (EU) 2024/573 for the period 2027 to 2029. The decision lists undertakings by name and address, using quota history and reporting data between 2022 and 2024, supporting the phasedown schedule for HFCs.
EU Council
Upcoming Foreign Affairs Council to address Ukraine and Middle East crises
The Foreign Affairs Council, scheduled for 13 July, will discuss Russia’s war against Ukraine, developments in the Middle East, and the implementation of the EU Black Sea strategy.
EP Committee Work
ITRE Committee advances grid permitting simplification report (Niels Fuglsang, rapporteur)
On 3 July, the Committee on Industry, Research and Energy (ITRE) adopted the report by Niels Fuglsang (S&D, Denmark) on the proposal to amend Directives (EU) 2018/2001, 2019/944, and 2024/1788 regarding faster permit-granting for energy infrastructure. The report proposes shorter permitting deadlines, a single digital portal per Member State, and stricter rules on 'overriding public interest' for renewable and grid projects.
Massimiliano Salini (ITRE) issues opinion on Temporary Decarbonisation Fund proposal
On 3 July, the ITRE Committee delivered its opinion on the proposed regulation establishing a Temporary Decarbonisation Fund. Rapporteur Massimiliano Salini (EPP, Italy) provides recommendations on fund structure to support the transition period for affected industries.
ITRE report on amending Regulation (EU) 2024/1252 (Mohammed Chahim, rapporteur)
Adopted 2 July, the ITRE Committee report by Mohammed Chahim (S&D, Netherlands) concerns amendments to Regulation (EU) 2024/1252, detailing changes to existing measures in the EU’s clean energy and industrial policy framework.
ENVI Committee ordinary meeting addresses climate and health policy
The Committee on Environment, Public Health and Food Safety (ENVI) held an ordinary meeting in Brussels on 2 July. The agenda focused on environmental and health policy, including the implementation of EU climate commitments and cross-sectoral impacts on energy.
What We're Reading This Week
- How Europe's growing need for cooling is reshaping electricity demand: Rising air conditioning use across Europe is driving higher electricity consumption and challenging grid stability during heatwaves.
- Burnham wants to bring Britain hope. First, he needs to cut energy bills.: Andy Burnham's strategy for restoring optimism in Britain hinges on tackling high energy costs for households.
- Von der Leyen visits Baku and Yerevan to deepen South Caucasus ties: Von der Leyen's diplomatic mission signals strengthened EU engagement in the South Caucasus amid shifting regional dynamics.
