Under the EU’s Emissions Trading System (EU ETS), the concerned stationary industrial installation may receive free allocation of emission allowances up to the relevant benchmark levels, which reflect the best performing installations in the EU.
The European Commission has prepared a draft implementing regulation presenting the updated values of benchmarks to be applied in the period 2021–2025, which is the is the first part of phase 4 of the EU ETS. The new benchmarks reflect the technological progress achieved since the phase 3 benchmark values where determined. In addition, the draft implementing regulation also presents the average emission factor of the 10% best installations per benchmark.
The draft implementing regulation has been published on the Better Regulation portal for a 4‑week stakeholder feedback period that will be open until 4 January 2021.
According to Article 10a(2) of the revised EU ETS Directive, the benchmark values are to be updated for phase 4 of the EU ETS using the following methodology:
- obtaining the average emission intensity of the 10% best installations for all 54 benchmarks for the years 2016/2017;
- comparing these values with the phase 3 benchmark values and calculating an annual reduction factor for the 9-years period from 2007/2008 to 2016/2017;
- increasing the annual reduction factor to 0.2% if it is below that value or reducing it to 1.6% if it is above that value;
- calculating the benchmark values to be used from 2021 to 2025 by extrapolating the phase 3 benchmark values to the years 2022/2023 (i.e. by using the annual reduction factor and a period of 15 years);
The benchmarks update is based on the data submitted in the NIMs (National Implementation Measures) submitted by the competent authorities to the Commission and includes verified data on the emissions and production of all installations receiving free allocation under the EU ETS. The detailed assessment of the installation-specific data has resulted in a high-quality dataset for updating the benchmarks.
After the end of the feedback period, the Commission will submit the implementing Regulation to the Climate Change Committee for voting (end of January 2021). The Commission intends to adopt the Regulation by the end of February 2021.
- Draft implementing regulation on updated benchmark values, published initiatives
- The revised EU ETS Directive (Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814)
- Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council.
- Commission Decision of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council
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