Following the judgment by the Court of Justice of the European Union on 28 April 2016, the Commission will modify the value of the cross-sectoral correction factor applied in the third trading period of the EU ETS to determine free allocations to industrial installations. The Court invalidated the currently applicable cross-sectoral correction factor from 1 March 2017.
In line with the Court's judgment, the Commission will adopt in due course a Decision to recalculate the maximum annual amount of free allowances available to industrial installations for the period from 2018 to 2020. The methodology will observe the Court's view on how emissions from new sectors and gases included in the EU ETS from 2013 onwards have to be treated in the calculation.
The revised cross-sectoral correction factor will lead to reduced free allocation for industry as well as increased auction volumes as from 2018.
- Publication date
- 23 June 2016
- Directorate-General for Climate Action