EU plan could award €8.7B in carbon allowances to CCS projects

This signals a major policy shift toward using carbon market revenue to directly subsidize CCS infrastructure, potentially reshaping the economics of hard-to-abate sectors like cement. The scale of the allowance transfer would make CCS a more viable compliance strategy for major emitters, but its success hinges on whether carbon prices sustain the projected valuation. The concentration of benefits among a few large cement firms suggests a competitive advantage for early movers, so watch whether the plan triggers broader CCS adoption or merely consolidates existing leaders.