The European Commission proposes extending free ETS allowances until 2038 while requiring 100% investment equivalence from 2031. The Industrial Decarbonisation Bank commits €100 billion, with €30 billion available through 2028-2030. Member States must spend 50% of ETS revenues on decarbonisation. The Linear Reduction Factor adjusts to 3.7% for 2031-2035 and 1.7% for 2036-2040.