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Benchmarks for free allocation: timeline for adoptionPublished on 25-02-2009

 

The EU ETS Directive (2003/87/EC) was revised on 17 December 2008. The amended Directive contains a range of measures to be adopted by the Commission after agreement by the Member States (through so called comitology procedure). One of the most important measures requires the Commission to define fully harmonised rules for free allocation of CO2 allowances, which should be based – to the extent feasible – on benchmarks.

The amended Directive gives some indications on how to determine the benchmarks. Article 10a(2) reads:

“In defining the principles for setting ex-ante benchmarks in individual sectors or sub-sectors, the starting point shall be the average performance of the 10% most efficient installations in a sector or sub-sector in the Community in the years 2007-2008. The Commission shall consult the relevant stakeholders, including the sectors concerned.”

The final benchmarks will be determined also taking into account other important considerations referred to in Article 10a(1) of the amended Directive.

The Commission shall adopt the benchmarks by 31 December 2010. Main steps in the process will include:

  • Informal technical working group, 1st meeting

13 February 2009

  • Data collection and further work of consultants

spring 2009

  • Stakeholder consultation (only for invited stakeholders)

30 March 2009

  • Informal technical working group, 2nd meeting

16 April 2009

  • Stakeholder consultation (only for invited stakeholders)

 (tbc) 27 April 2009

  • Stakeholder consultations (both “bilateral” and “multilateral” consultations with industry sectors and NGOs)
  • Informal technical working group meetings

autumn 2009-spring 2010

  • Draft benchmarks

spring 2010

  • Draft decision to Member States

September 2010

  • Adoption

December 2010

This timetable will be updated regularly.

The Commission has contracted a consultant (Ecofys, in cooperation with Fraunhofer Institute for Systems and Innovation Research, and Öko-Institute) to further develop the knowledge base to be used in setting the EU wide benchmarks. Industry associations representing installations covered by the ETS are encouraged to contact and cooperate with the contractor in the process of data collection and development of benchmarks.

Based on a recent exchange of emails, the work on sectoral benchmarks, including benchmarks for heat, are kicking off on Thursday (25th February).