The European Commission today published a status update on the allocation of allowances from the New Entrants' Reserve 2013 – 2020
In the third trading period of the EU ETS, new installations and installations that increase their capacity are eligible for free allocation from the New Entrants' Reserve. The initial New Entrants' Reserve held 480.2 million allowances.
Until now, 144.3 million allowances have been reserved for 698 installations for the entirety of the third trading period. This leaves 70% of the initial New Entrants' Reserve 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 Decision establishing the Market Stability Reserve (MSR) foresees that the allowances that remain unused from the New Entrants' Reserve in phase 3 will be put in the MSR in 2020. In turn, the provisional agreement reached on the revised ETS Directive for the period post-2020 foresee that 200 million allowances from the MSR will be used to constitute a New Entrants' Reserve for the period from 2021 to 2030.
The table on the allocation of allowances from the New Entrants' Reserve will be updated again in July 2018.