Out of 52 industries covered by the European Union's Emissions Trading Scheme (ETS), 43 could face a maximum reduction in the benchmark used to determine their free greenhouse gas (GHG) emission allowances, according to a draft European Commission document dated 30 June.
By lowering the cost of compliance of ETS industries with emission reduction requirements, free allowances are expected to prevent European industries from being too disadvantaged compared to international competitors that are not subject to equivalent climate rules and thus combat the risk of carbon leakage.
In order to determine these allowances, a benchmark value is calculated for the GHG emissions of a production activity. These benchmarks are set at the average emission level of the 10% most efficient installations in each sector.
In the Commission document consulted by EUROPE, it appears that the institution plans to reduce the benchmarks for 43 sectors by 24% on average over the 2021-2025 period, which corresponds to the maximum update rate for the benchmarks.
This contraction would primarily concern refinery products, coke, iron foundry, lime, ceramic materials and ammonia.
On the other hand, benchmarks in other sectors such as primary aluminium and white cement clinker would be reduced by only 3%, which is the lowest possible update rate. (Original version in French by Damien Genicot)