Adoption of the Commission Decision on the Union-wide quantity of allowances for 2024

The Commission has adopted a Decision on the Union-wide quantity of allowances to be issued under the EU Emissions Trading System for 2024 in respect of stationary installations and maritime transport activities (the ‘cap’).

The calculation of the cap that underpins the Commission Decision applies the following changes introduced in the recent revision of the ETS Directive (see further information on the revision below):

• the reduction of the cap by 90 million in 2024 (with a second reduction of 27 million to follow in 2026);
• the inclusion of the maritime transport sector in the scope of the ETS Directive in 2024, resulting in an increase of the cap of 78,4 million, as laid out in paragraph (11) of Directive (EU) 2023/959; and
• the absolute amount by which the cap will be reduced yearly by applying the increased linear reduction factor of 4,3 % from 2024 to 2027 to the reference value for stationary installations and for the maritime sector.

In order to calculate the cap for 2024, the Union-wide quantity of allowances resulting from the reduction of the cap and the inclusion of maritime transport (first two points above) is reduced by the total amount due to the linear reduction factor. The cap and the yearly reduction of the allowances include the States of the European Economic Area and the European Free Trade Association (EEA-EFTA States).

The cap figure for 2024 established in the Decision does not take into account future changes:

• the reduction in the cap by 27 million that will take place in 2026,
• the increase of linear reduction factor to 4,4 % from 2028, nor
• the increases of the total quantity of allowances as a result of the scope extension for maritime transport activities that will take place in 2026 and 2027, to take into account the coverage of greenhouse gas emissions other than CO₂ emissions from maritime transport activities and the coverage of emissions of offshore ships respectively, based on their emissions for the most recent year for which data is available.

In accordance with Article 3c of the ETS Directive, the Commission will determine the total quantity of allowances to be allocated in respect of aircraft operators for the year 2024 in a separate upcoming decision.

The Commission Decision will be published in the Official Journal on 31 July.

Read more

• Commission Decision on the Union-wide quantity of allowances to be issued under the EU Emissions Trading System for 2024
• Directive 2023/959 amending the EU ETS Directive (Directive 2003/87/EC) amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system
• Current consolidated version of the ETS Directive (2003/87/EC) (including the changes introduced by Directive 2023/958 and Directive 2023/959)
• Revision of the EU ETS as part of the Fit for 55 package
• Directive (EU) 2023/958 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC as regards aviation’s contribution to the Union’s economy-wide emission reduction target and the appropriate implementation of a global market-based measure