Climate Action

Commission adopts the uniform cross-sectoral correction factor to be applied to free allocation for 2021 to 2025 in EU ETS

31/05/2021

The European Commission today adopted the Commission Implementing Decision determining the uniform cross-sectoral correction factor for the adjustment of free allocations of emission allowances for the period 2021 to 2025.

Article 10a(5) and 10a(5a) of Directive 2003/87/EC set the maximum annual amount of free allowances that should not be exceeded. If the sum of the annual amount of free allowances submitted by Member States and EEA EFTA states exceeds that limit, an annual cross-sectoral correction factor should be applied.

The preliminary annual amount of free allowances for 2021-2025 were submitted by Member States and EEA EFTA states on 31 March 2021 in accordance with Article 14(5) of Regulation (EU) 2019/331, and the cross-sectoral correction factor has been calculated to be 100% for the allocation period from 2021 to 2025.

The additional amount of up to 3% of the total Union-wide quantity of allowances issued under the Emission Trading System, pursuant to Article 10a(5a) of Directive 2003/87/EC, was not used as the demand for free allowances did not trigger the need to apply a uniform cross-sectoral correction factor.