Central Development
On 28 April, the European Commission said Germany intends to voluntarily cancel EU ETS allowances linked to the closure of 14 electricity-generation plants in 2024, following a notification completed on 18 December 2025, according to the European Commission. Separately, 43% of EU expenditure under future CAP National and Regional Partnership Plans is expected to contribute to environmental and climate objectives, the European Commission reported in new guidance for CAP 2028–2034. In parallel, MEP Dario Tamburrano asked the Commission whether it will draft guidelines to promote low-impact geothermal technologies, in a European Parliament document. MEP Željana Zovko separately pressed the Commission on measures to protect renewable energy generators in candidate countries under CBAM, via a European Parliament document.
Why It Matters
Voluntary cancellations tied to plant closures reduce surplus allowances and tighten the EU carbon market, reinforcing emissions cuts beyond automatic declines in power-sector demand, per the European Commission. The CAP guidance indicates material budget alignment of farm support with climate aims, with 43% of planned spending expected to target green objectives, according to the European Commission. Parliamentary scrutiny points to pressure for clearer rules on geothermal impacts and for CBAM implementation that avoids penalizing renewable producers in EU-neighbouring markets, as reflected in European Parliament documents.
Perspective
The CAP figure reflects Commission guidance and member-state planning assumptions rather than finalized appropriations, the European Commission notes. Germany’s cancellations address 2024 closures; follow-on moves for subsequent years would further signal intent to limit market slack, per the European Commission. The geothermal query cites a Regional Health Agency report of elevated male mortality in Tuscany’s Monte Amiata and notes Enel Green Power’s flash-technology emissions and a 20-year concession extension—context that may sharpen calls for “low-impact” geothermal standards—according to a European Parliament document. The same filing references the Commission’s stated aim to facilitate deployment of low-impact geothermal.
What to Watch
Commission confirmation of the volume and timing of Germany’s allowance cancellations, and whether other states follow with similar notifications. European Commission
- How CAP guidance translates into approved national and regional plans and measurable green spending shares. European Commission
- The Commission’s written replies to the April 28 parliamentary questions on geothermal guidance and CBAM safeguards. European Parliament, European Parliament
- Whether scrutiny of Monte Amiata operations influences EU-level criteria for “low-impact” geothermal. European Parliament
