On Friday 21 July, the European Commission adopted a decision on the quantity of EU-wide allowances to be issued under the EU Emissions Trading System (ETS) for 2024.
The decision, published in the Official Journal of the European Union on Monday 31 July, specifically targets fixed installations and maritime transport activities, and is based on the recent revision of the ETS Directive (see EUROPE 13164/13).
The main changes include a reduction in the ceiling of 90 million for 2024, with a further reduction of 27 million planned for 2026.
At the same time, the maritime transport sector has been included in the scope of the ETS Directive for 2024, leading to an increase in the ceiling of 78.4 million allowances.
The calculation of the ceiling also takes into account an increased linear reduction factor of 4.3%, which will be applied annually from 2024 to 2027 to the reference value for fixed installations and the maritime sector.
This measure is designed to encourage a gradual reduction of greenhouse gas emissions in these sectors.
It is essential to note that the ceiling figure for 2024 does not take into account certain future developments.
A further reduction of 27 million will take place in 2026 and, from 2028, the linear reduction factor will be increased to 4.4%. In addition, the total quantities of allowances will also be adjusted to include non-CO2 greenhouse gas emissions from shipping activities as well as emissions from offshore vessels based on the most recent data available.
However, the Commission’s decision does not take into account the allowances allocated to aircraft operators for 2024, in accordance with Article 3c of the ETS Directive, which will be the subject of a separate decision in the near future.
See the decision: https://aeur.eu/f/8ah (Original version in French by Nithya Paquiry)