ETS Industrial Competitiveness, Grid Modernization Costs & Green Renovation Funding

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Table of Contents

Overview

This report covers parliamentary questions (PQs) and Commission answers published within the timeframe of 30 August 2026 to 6 September 2026. The documents reveal a strong parliamentary focus on the financial implications of the energy transition, specifically examining the impact of the EU Emissions Trading System (ETS) on industrial competitiveness and consumer affordability. Other dominant themes include the modernization of energy grids to support electrification, the regulatory challenges of integrating high-energy digital infrastructure like AI data centres, and the strategic allocation of EU funds for building renovations and clean tech. In total, 32 PQs are covered in this period; 24 have been answered by the Commission, while 8 remain pending.

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Wind, Solar & Other Renewables

❓ Protection of the Geraneia Mountains and compliance with the EU’s environmental obligations

In E-003271/2026/rev.1, submitted by Emmanouil Fragkos (ECR) on 12 August 2026, the MEP raised concerns over plans to install 57 wind turbines in the recently burnt Natura 2000 area of the Geraneia Mountains, asking if special measures will be examined to protect the area before authorization is granted. A response from the Commission is pending.

❗ Increased use of fossil fuels: wind energy underperformance particularly to blame

In E-002561/26, submitted by Mathilde Androuët (PfE) on 22 June 2026, the MEP questioned the EU’s recent increase in fossil fuel electricity generation, attributing it to wind and hydro underperformance, and asked if policy would shift toward dispatchable sources. In a response on 26 August 2026, Commissioner Jørgensen explained that the fossil fuel increase was due to grid congestion and insufficient flexibility leading to renewable curtailment, noting that market design reforms and energy storage initiatives aim to boost non-fossil flexibility.

❓ Noise pollution from wind turbines

In O-000034/2026, submitted by Virginie Joron (PfE) on 1 September 2026, the MEP highlighted scientific studies on infrasound propagation from wind turbines and asked if the Commission plans to revise the Environmental Noise Directive and Industrial Emissions Directive to address these health risks. A response from the Commission is pending.

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Energy Infrastructure, Grids & Storage

❗ Billions into the grid, but who pays the bill?

In E-002628/26, submitted by Erik Kaliňák (NI) on 25 June 2026, the MEP questioned if current grid modernization is sufficient for electrification targets and how the Commission will prevent households and industry from absorbing the multibillion-euro costs. In a response on 27 August 2026, Commissioner Jørgensen outlined the Grids Action Plan, a five-fold increase in the Connecting Europe Facility’s energy budget, and network charge proposals designed to future-proof bills and incentivize system-friendly grid use.

❗ Green transition of heavy-duty road transport, with a focus on hydrogen infrastructure and electricity grid capacity

In E-001632/26, submitted by Asger Christensen (Renew) on 21 April 2026, the MEP inquired about Member States’ compliance with the Alternative Fuels Infrastructure Regulation (AFIR) regarding hydrogen rollout and the grid capacity for electric HGVs. In a response on 2 September 2026, Commissioner Tzitzikostas noted that most Member States have plans to meet AFIR obligations and highlighted the Grids Action Plan to overcome grid connection bottlenecks.

❓ European funding to upgrade the electricity grid and prevent wildfires in Greece

In E-003280/2026, submitted by Sakis Arnaoutoglou (S&D) on 14 August 2026, the MEP requested clarification on the physical and financial scope of Greek Recovery and Resilience Plan measures for upgrading electricity grids in forest areas to prevent wildfires, asking for completion metrics and risk assessment criteria. A response from the Commission is pending.

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Financing, Markets & Investment

❗ Funding for grids, storage and decarbonisation under AccelerateEU

In E-002268/26, submitted by Mathilde Androuët (PfE) on 3 June 2026, the MEP questioned the financial burden of grid modernization and decarbonization on consumers, characterizing the ETS as an indirect carbon tax. In a response on 26 August 2026, Commissioner Jørgensen stated that the long-term benefits of the transition will offset costs, noting that the ETS has generated over EUR 250 billion€250BCited figure since 2013 to support decarbonization and that a new EUR 100 billion Industrial Decarbonisation Bank is planned.

❗ Guarantees for vulnerable consumers in Romania in the application of the Energy Performance of Buildings Directive

In E-002308/26, submitted by Ioan-Rareş Bogdan (PPE) on 4 June 2026, the MEP asked how Romania will finance EPBD-mandated renovations, questioned flexibility for hybrid heating, and asked about biomass use in rural areas. In a response on 26 August 2026, Commissioner Jørgensen highlighted EUR 2.9 billion€2.9BCited figure in Romania’s recovery plan for renovations, clarified that the 2040 fossil boiler phase-out is indicative, and confirmed that high-efficiency biomass complies with EU legislation.

❗ Green renovations at the price of debt?

In E-002626/26, submitted by Erik Kaliňák (NI) on 25 June 2026, the MEP questioned the financial burden of green building renovations on owners and tenants, asking if debt risks are acceptable. In a response on 27 August 2026, Commissioner Jørgensen emphasized that building requirements are cost-optimal, that energy efficiency keeps housing affordable, and pointed to the European Affordable Housing Plan and EU funding support.

❗ Interaction between CBAM and the EU ETS: impact of free allowances on competition

In E-002629/26, submitted by Cynthia Ní Mhurchú (Renew) on 25 June 2026, the MEP asked how accumulated free ETS allowances impact competition for sectors covered by the Carbon Border Adjustment Mechanism (CBAM). In a response on 1 September 2026, Commissioner Hoekstra explained that the July 2026 ETS revision modernizes free allocation, gradually phasing it out by 2038 in step with CBAM, and relies on the Market Stability Reserve rather than retroactive adjustments.

❓ Reducing the energy costs of producers in the Philippi marshes

In E-003273/2026, submitted by Emmanouil Fragkos (ECR) on 12 August 2026, the MEP asked which CAP and cohesion policy instruments can fund collective self-production and energy storage projects for farmers, and whether priority grid connections can be envisaged. A response from the Commission is pending.

❗ Accumulation of free carbon allowances and risks of competition being distorted under CBAM

In E-002301/26, submitted by Julie Rechagneux (PfE) and 14 co-signatories (PfE, PPE, ESN) on 4 June 2026, the MEPs questioned the competitive distortion caused by accumulated free carbon allowances under CBAM. In a response on 1 September 2026, Commissioner Hoekstra clarified that excess free allocation often reflects successful decarbonization investments and that the July 2026 ETS revision will further balance carbon leakage protection with emission reduction incentives.

❓ Funding foreign carbon credits rather than modernising Europe

In E-003295/2026, submitted by Piotr Müller (ECR) on 19 August 2026, the MEP questioned the proposal to fund foreign carbon credits under the ETS from 2036 instead of modernizing European industry, asking how the Commission will prevent double-counting and protect EU competitiveness. A response from the Commission is pending.

❓ EU-funded home renovations: ineffective at delivering energy savings

In E-003291/2026, submitted by Mihai Tudose (S&D) on 18 August 2026, the MEP referenced a European Court of Auditors report finding that RRF-funded home renovations delivered lower-than-expected energy savings, asking if the Commission will prioritize major renovations using specific impact criteria. A response from the Commission is pending.

❗ Proposed EUR 2 billion state aid to Tata Steel Nederland

In E-002566/26, submitted by Reinier Van Lanschot (Verts/ALE) and 3 co-signatories (Verts/ALE) on 22 June 2026, the MEPs questioned the compatibility of a proposed EUR 2 billion state aid to Tata Steel Nederland under the CEEAG. In a response on 26 August 2026, Executive Vice-President Ribera declined to comment on ongoing pre-notification cases but outlined general CEEAG rules requiring an incentive effect beyond adapting to EU standards and limiting aid to necessary net extra costs.

❓ The escape clause gives corporate groups a leg up while ordinary people struggle

In E-003308/2026, submitted by Lefteris Nikolaou-Alavanos (NI) on 24 August 2026, the MEP condemned the Greek Government’s request to extend the ‘national escape clause’ to energy infrastructure projects, questioning EU policies that allegedly secure profits for big corporations while households suffer from high prices. A response from the Commission is pending.

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Regulation, Governance & National Plans

❗ Potential clash between RED II and Italy’s rules governing incentives for renewable energy communities

In E-002673/26, submitted by Dario Tamburrano (The Left) and 3 co-signatories (The Left, Verts/ALE) on 29 June 2026, the MEPs questioned a potential clash between RED II and Italy’s GSE rules on incentives for renewable energy communities. In a response on 26 August 2026, Commissioner Jørgensen clarified that Article 21 applies to self-consumers rather than communities, and affirmed that the Commission is working with Member States to ensure correct RED II transposition.

❗ Review report on Regulation (EU) 2024/1747 on the electricity market

In E-002757/26, submitted by Nicolás González Casares (S&D) on 2 July 2026, the MEP asked about the delayed review report on short-term electricity markets, crisis remedies, and PPAs. In a response on 27 August 2026, Commissioner Jørgensen stated that the Commission is finalizing the report and intends to publish it later this year, addressing all required scope elements.

❗ Revision of the data centre sustainability rating system

In E-002781/26, submitted by Nicolás González Casares (S&D) on 3 July 2026, the MEP raised concerns that the revised data centre sustainability rating scheme yields to Big Tech, risking energy security. In a response on 27 August 2026, Commissioner Jørgensen clarified that the scheme does not promote natural gas and that the Commission will consider an early review clause after evaluating public consultation feedback.

❗ Application of the life cycle CO2 emissions exemption under Article 11(2) of Regulation (EU) 2024/573

In E-002966/26, submitted by Wouter Beke (PPE) on 15 July 2026, the MEP requested clarification on the methodology for calculating life cycle CO2 emissions under the F-gas Regulation exemption for heat pumps. In a response on 1 September 2026, Commissioner Hoekstra stated that the methodology will be set under the Eco-design for Sustainable Products Regulation (ESPR) if F-gas rules force lower efficiency, though no such cases have yet been identified.

❗ Influence of foreign-funded think tanks on shaping the European Green Deal

In E-002267/26, submitted by Mathilde Androuët (PfE) on 3 June 2026, the MEP questioned the influence of foreign-funded think tanks on the ‘energy efficiency first’ principle. In a response on 27 August 2026, Commissioner Jørgensen clarified that the principle resulted from internal Commission reflection, though the referenced think tanks participated in standard EU-funded research consortia in compliance with transparency registers.

❗ Integration of municipal waste incineration into the ETS

In E-002253/2026, submitted by a Member of the European Parliament on an unspecified date, the MEP questioned the integration of waste incineration into the ETS. In a response on 31 August 2026, Commissioner Hoekstra noted the ETS review proposes integrating municipal waste incineration and promoting circular carbon capture to ensure a level playing field across the waste value chain.

❗ Availability of air conditioning in the context of heatwave-related deaths

In E-002807/26, submitted by Stanisław Tyszka (ESN) on 7 July 2026, the MEP asked if EU ETS costs are limiting household access to life-saving air conditioning. In a response on 31 August 2026, Commissioner Hoekstra clarified that while the ETS review did not specifically assess AC affordability, ETS revenues directly promote heat pump deployment, and the main drivers of electricity costs remain imported fossil fuels and grid charges.

❗ Mandatory ceilings for data centre water consumption

In E-002764/26, submitted by Ioan-Rareş Bogdan (PPE) on 3 July 2026, the MEP questioned mandatory ceilings for data centre water consumption and banning drinking water for cooling. In a response on 26 August 2026, Commissioner Jørgensen noted the upcoming data centre rating scheme will provide freshwater consumption data for local authorities and that the Electrification Action Plan will introduce minimum performance standards.

❗ Volkswagen Group prevents users from accessing free, real-time charging data

In E-002465/26, submitted by Bruno Tobback (S&D) on 16 June 2026, the MEP questioned Volkswagen Group blocking users from accessing real-time charging data, citing the EU Data Act. In a response on 31 August 2026, Executive Vice-President Virkkunen confirmed awareness, noting the Renewable Energy Directive requires manufacturers to provide such data in real time, and stated that enforcement lies primarily with national authorities while the Commission monitors the situation.

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Industry, Innovation & Supply Chains

❗ Thousands of jobs in energy-intensive industries under pressure from Brussels

In E-002290/26, submitted by Erik Kaliňák (NI) on 4 June 2026, the MEP questioned the economic impact and carbon leakage risks of reducing free ETS allowances. In a response on 1 September 2026, Commissioner Hoekstra referred to the July 2026 ETS review proposal, asserting that carbon leakage protection has been effective, and highlighted the new Industrial Decarbonisation Bank and Investment Booster.

❗ The EU’s AI dream could turn into a nightmare without energy

In E-002625/26, submitted by Erik Kaliňák (NI) on 25 June 2026, the MEP questioned whether the EU has sufficient energy and grid capacity for AI data centres without driving up household prices. In a response on 27 August 2026, Commissioner Jørgensen outlined the Cloud and AI Development Act, cross-sectorial grid planning, and a Data Centre Energy Efficiency Package to ensure sustainable integration.

❓ Supply of sustainable aviation fuel and implementation of the ReFuelEU Aviation Regulation

In E-002800/2026/rev.1, submitted by Barry Cowen (Renew) on 7 July 2026, the MEP requested clarification on the legal basis for applying trade defense measures on biodiesel and HVO to US-origin sustainable aviation fuel (SAF) and its impact on ReFuelEU Aviation compliance. A response from the Commission is pending.

❗ Effects of the ETS on European industrial competitiveness

In E-002397/26, submitted by Anna Maria Cisint (PfE) on 10 June 2026, the MEP asked if the ETS contributes to deindustrialization and requested suspending the maritime ETS. In a response on 1 September 2026, Commissioner Hoekstra stated the July 2026 ETS review includes a more gradual decarbonization pathway to 2040, confirmed market integrity, and ruled out suspending the maritime ETS while offering support mechanisms.

❗ PFAS restriction in wind turbines

In E-002887/2026, submitted by a Member of the European Parliament on an unspecified date, the MEP questioned the restriction of PFAS in wind turbines. In a response on 4 September 2026, Executive Vice-President Séjourné explained that ECHA is assessing a universal PFAS restriction proposal, and while waiting for the final assessment, the Commission cannot anticipate how wind turbines will be addressed, though critical applications may receive derogations.

❗ Digital sovereignty stress test: Who will foot the bill for the EU’s technological ambitions?

In E-002386/26, submitted by Ioan-Rareş Bogdan (PPE) on 10 June 2026, the MEP questioned financial mechanisms for tech sovereignty, grid modernization costs for data centres, and compliance for SMEs under the Cloud and AI Development Act. In a response on 1 September 2026, Executive Vice-President Virkkunen highlighted the proposed European Competitiveness Fund, the Grids Action Plan, and a risk-based sovereignty framework designed to reduce fragmentation.

❗ Review of EU ETS benchmarks and support for a tailored methodology for the European ceramics industry

In E-002095/26, submitted by Sandra Gómez López (S&D) and Leire Pajín (S&D) on 20 May 2026, the MEPs asked about reviewing EU ETS benchmarks to protect the European ceramics industry. In a response on 1 September 2026, Commissioner Hoekstra pointed to a July 2026 proposal increasing free allocation based on fall-back benchmarks by EUR 6 billion for 2026-2030, avoiding the cross-sectoral correction factor to prevent carbon leakage.

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