Allocation methodology for the European Commission

Design of a benchmark based allocation methodology

In the third phase of the EU ETS, allocation of emission allowances will be done via emission benchmarks. In a series of consecutive projects (started in 2008), Ecofys assisted the European Commission in setting up and applying the allocation methodology. Ultimately, the projects resulted in the allocation decision that will determine how allowances, worth approximately 15 billion euros per year in Europe, will be distributed over the various industries participating in the scheme. The projects involved numerous stakeholder interactions with government officials and industrial sector organisations. Ecofys experts adequately found a balance between industry interest and the wish for a transparent and fair allocation methodology within the boundaries of the EU ETS legislation.

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Maarten Neelis
Climate Strategies and Policies
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Allocation methodology for the European Commission