Free allocations under Phase 3 benchmarks: early evidence of what has changed

16 April 2013 - Carbon Trends

One of the most controversial changes to the EU ETS in Phase 3 (2013-2020) has been the introduction of emissions-performance benchmarks for determining free allocations to non-electricity producers.

Phases 1 and 2 used National Allocation Plans (NAPs). For practical reasons NAPs were drawn up by each Member State, but this led to problems, including over-generous allowance allocation, insufficiently harmonised allocations across countries and distorted incentives to reduce emissions.

Benchmarking tries to fix things by allocating the equivalent of 100% of allowances needed if every installation used the best available technology. But this is not universally popular and industries say that they might lose international competitiveness.

So a new study by I4CE and the Climate Economics Chair examined the data from the preliminary Phase 3 free allocations of 20 EU Member States and asked: how much are free allocations actually going to change with benchmarking?

Free allocations under Phase 3 benchmarks: early evidence of what has changed Download

To learn more

05/06/2024
Appendix tools – Social and Climate Budget Tagging: Insights from Indonesia

Lorem ipsum dolor sit amet, consectetur adipiscing elit. In suscipit vitae turpis id dignissim. Aenean aliquet quam ac volutpat convallis. Nullam dignissim quis libero eget tempus. Vestibulum cursus odio venenatis, scelerisque augue ac, eleifend leo. Vestibulum sagittis blandit ipsum a ornare. Donec non erat at mauris scelerisque dignissim a sit amet orci. Quisque viverra venenatis magna, vel pharetra tellus laoreet accumsan. Integer vulputate malesuada suscipit. Integer rhoncus, dolor sed facilisis posuere, velit augue lacinia lacus, id fermentum est nulla sodales orci. Quisque et suscipit turpis, sed blandit augue.
04/25/2024
I4CE’s recommendations to the European Banking Authority on prudential transition plans

The European Banking Authority (EBA) is clarifying how the banks should frame their “transition plan” as required by the EU prudential regulation. The transition plan is the bank’s strategic roadmap to prepare for the transition to a sustainable economy as framed by the jurisdictions they operate in, including an EU climate-neutral economy. It has been introduced in several EU regulatory frameworks, including as a disclosure requirement arising from the CSRD. The prudential framework and the EBA are focusing on a specific angle: how the banks plan to manage their financial risks related to the transition. EBA’s framing of these plans will be key to determine whether the banks will manage their financial risks consistently with the broader need of financing the transition to a low-carbon economy.
04/19/2024 Foreword of the week
World bank and IMF Spring Meetings: How can the reformed institutions play a leading role in funding the transition?

Rethinking how development can be financed to take into account the rising challenges of our time is a fastidious task, especially when thousands of experts, decision makers and practitioners want to leave their print. The outline of the new international financial architecture is being debated again this week, with more questions open for discussion than consensus on the answers.

Free allocations under Phase 3 benchmarks: early evidence of what has changed

Appendix tools – Social and Climate Budget Tagging: Insights from Indonesia

I4CE’s recommendations to the European Banking Authority on prudential transition plans

World bank and IMF Spring Meetings: How can the reformed institutions play a leading role in funding the transition?