Publications

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
  • 10/01/2026 Blog post
    Staying the course – with carrots and sticks

    In the recent State of the Union speech, Ursula von der Leyen reiterated the need to stay on course towards Europe’s climate targets. In the coming months, the negotiations on EU’s Emission Trading System and the new framework for resilience and risk assessment will reveal the political and industrial forces at play, and if Member […]

  • 09/29/2026 Blog post
    The Innovation Fund has a growing pipeline of stuck projects

    The Innovation Fund is Europe’s flagship programme for bringing breakthrough cleantech to market, but a growing share of its grant portfolio is stuck before financial close.

  • 09/25/2026 Foreword of the week
    Towards resilient economies: from progress to transformation

    There is no single blueprint, but better evidence, more effective use of financial tools and stronger learning across countries are essential elements to accelerating the transition towards more resilient and sustainable economies.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer