ETS: 2013 distribution of free allowances postponed

On 25 January 2013, the European Commission announced a delay in the distribution of free allowances to industrial installations participating in the EU Emissions Trading System (EU ETS), scheduled by the end of February 2013, reports Cembureau. According to an official statement, "the Commission aims to conclude the overall process as soon as possible in order to provide industrial installations and all other market participants with certainty".

Cembureau points out that on 12 December 2012, the Alliance of Energy Intensive Industries called on the European Commission to finalise the adoption of the National Implementation Measures (NIMs), which include the calculated free allocation to EU ETS installations, by the end of 2012. In a letter to DG Climate Action, the AEII highlights that the current uncertainty around free allocation is having a detrimental effect on good planning, and thus significantly undermines the capacity of the sectors’ installations to develop their budgeting and carbon abatement plans.

As a result, the Alliance also asks for the Commission to confirm that it will finalise free allocation in time for national authorities to allocate the free allowances before 28 February 2013, as foreseen in the Emissions Trading Directive.

Source: CEMBUREAU, the European Cement Association