The Climate Change Committee, where all Member States are represented, is consulted for the preparation of implementing acts. The Commission will continue to seek stakeholder input on the implementation of the revised EU ETS legislation. Feedback was received from 85 stakeholders and a summary was presented to the European Parliament and the Council. The public also had the possibility to provide feedback on the legislative proposal. The legislative proposal was submitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions for further consideration under the ordinary legislative procedure. written consultation on the revision of the ETS (more than 500 contributions received).įollowing these consultations and the analysis of EU climate policy targets for 2030, the Commission carried out an impact assessment.written consultation on post-2020 carbon leakage provisions.Stakeholders were involved at various stages in the development of the EU ETS revision for phase 4.Įxtensive consultations were carried out in 2014, including
Revisions next stage for free#
Overall, more than 6 billion allowances are expected to be allocated to industry for free over the period 2021-2030. The 54 benchmark values determining the level of free allocation to each installation will be updated twice in phase 4 to avoid windfall profits and reflect technological progress since 2008.The list of installations covered by the Directive and eligible for free allocation will be updated every 5 years.To prevent manipulation and abuse of the allocation adjustment system, the Commission may adopt implementing acts to define further arrangements for the adjustments. The threshold for adjustments was set at 15% and will be assessed on the basis of a rolling average of two years. Allocations to individual installations may be adjusted annually to reflect relevant increases and decreases in production.More flexible rules have been set to better align the level of free allocation with actual production levels:
This number consists of allowances that were not allocated from the total amount available for free allocation by the end of phase 3 (2020) and 200 million allowances from the MSR. For less exposed sectors, free allocation is foreseen to be phased out after 2026 from a maximum of 30% to 0 at the end of phase 4 (2030).Ī considerable number of free allowances will be set aside for new and growing installations. These sectors will receive 100% of their allocation for free. The system of free allocation will be prolonged for another decade and has been revised to focus on sectors at the highest risk of relocating their production outside of the EU. The revised EU ETS Directive provides predictable, robust and fair rules to address the risk of carbon leakage.
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