Climate Action

Commission publishes first status update for New Entrants' Reserve (NER) and impact of cessation rules

Man working on roof installing rails for solar panels © iStockphoto

The European Commission today published the first update on the allocation of allowances from the New Entrants' Reserve (NER) 2013 - 2020.

New installations covered by the ETS Directive, and installations that increase capacity, are eligible for additional free allocation from the NER in phase 3 of the EU Emissions Trading System. The initial NER held 480.2 million allowances.

Until now, 55.9 million allowances have been reserved for 186 installations for the entirety of the third trading period. This leaves 88% of the initial NER to be distributed to new installations that will be built in the future as well as existing installations that will increase their capacity in the years ahead.

The Commission also published information on the impact of the rules on partial cessations (reduced production levels) and significant capacity reductions. In 2013, allocation was reduced by around 35 million allowances for approximately 1000 installations that produced significantly less than the production on which allocation was calculated, or that reduced their production capacity.

The table on the allocation of allowances from the NER will be updated every 6 months. The table on the partial cessations and significant capacity reductions will be updated again at the end of 2014, and annually thereafter.