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

03/24/2023 Foreword of the week
International Day of Forests: carbon certification, adaptation and carbon sink

This week, for the International Day of Forests, I4CE offers you an overview of the forestry issues that are being debated in France and in Brussels. In our newsletter, you will discover a new blog post by Julia Grimault on European carbon certification and our latest analyses on the adaptation of French forests to climate change, the French carbon sink and the wood industry.
03/21/2023 Blog post Op-ed
European Carbon Certification: the unlikely alliance

The future European carbon certification framework is under intense debate. The first meeting of the expert group in charge of supporting the Commission has raised criticisms on the composition and mandate of this group, and the discussions have taken an unexpected turn by achieving the feat of bringing NGOs and CO2 Capture and Storage (CCS) industrialists to an agreement against natural carbon sinks, those of our forests or our agricultural soils. Where does this unlikely alliance come from?
03/17/2023 Foreword of the week
Net Zero Industry Act: Europe in the race for cleantech

The European Union still has a lot of work to do. Yesterday the European Commission published its Net Zero Industry Act, a piece of its response to the American Inflation Reduction Act, a necessary but still insufficient building block to keep the European Union in global cleantech race. It will also have to complete a number of directives and regulations to deliver its Green Deal. The EU election in 2024 is fast approaching, time is of the essence.

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

International Day of Forests: carbon certification, adaptation and carbon sink

European Carbon Certification: the unlikely alliance

Net Zero Industry Act: Europe in the race for cleantech