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Commission adopts Decision on calculating free allocation of emission allowances

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A Decision on how free emission allowances should be allocated to industrial installations covered by the EU Emissions Trading System (EU ETSi) from 2013 has been adopted by the European Commission. While auctioning will become the main principle for allocating allowances as of 2013, free allowances will still be given to industry until 2020, notably those deemed to be exposed to carbon leakage.

The Decision sets out the rules - including the benchmarks of greenhouse gas emissions performance - to be used by Member States in calculating the number of allowances to be freely allocated for these sectors. The list of exposed sectors and sub-sectors was determined at the end of 2009.

Member States will now collect data for each installation, with the deadline for submissions being 30 September 2011. The Commission will then check submissions before Member States calculate the final allocation per installation. This information should be ready during 2012.

The Commission has also developed, in close collaboration with Member States, guidance papers aimed at ensuring harmonised implementation of the allocation rules by Member States.