Climate Action

Court judgment again confirms benchmarks for free allocation of ETS allowances for 2013-2020


On 26 July 2017, the Court of Justice of the European Union delivered a judgment in which it confirmed the methodology applied by the Commission when establishing the benchmarks for free allocation of EU emissions trading scheme (EU ETS) allowances for the period 2013-2020 (Commission Decision 2011/278/EU).

The Court notably found that the methodology applied to determine the sintered ore benchmark was correct, maintained its previous judgment on the hot metal benchmark and confirmed that none of the questions examined by the Court affect the validity of Commission Decision 2011/278/EU.

The 54 EU ETS benchmarks are an important pillar of the regulatory framework to prevent the risk of carbon leakage. Legal certainty for industrial installations benefiting from free allocation of allowances is essential.

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