Free allocation of allowances during the emissions trading period 2013–2020

At the beginning of the trading period 2013–2020, significant changes were made to the emissions trading scheme compared to the first two phases. Those emission allowances that are allocated free of charge during the period 2013–2020 are given away in accordance with harmonised EU-level rules, and national allocation plans are no longer used.

For example, decisions concerning the total quantity of allowances, the total quantity and means of allocation of allowances given away for free, and allowance auctioning are made at EU level.

In 2013, the total quantity of allowances in the whole system is 2,039 million allowances, and the amount is reduced by 37.4 million allowances each year.  In the period 2013–2020, free allowances are no longer allocated to electricity production. Instead, operators in the sector have to purchase all the allowances they need at auctions or on the market.

Heat production and various industries continue to receive a share of their allowances for free, but free allocation will decrease in linear fashion during the period. Energy-intensive industries that face international competition are given emission allowances free of charge based on EU-level benchmarks.

In 2013–2020, a total of 450 installations located in Finland will receive free allowances. Their total free allocation is equivalent to an average of 19.7 million tonnes of carbon dioxide per year.

The number of free emission allowances allocated annually to installations operating under the Emissions Trading Act (311/2011) may be changed during the 2013–2020 period, if the operation, activity level, or capacity of the installations changes.

Changes affecting the free allocation of allowances and the rules applied to the calculation of the changed number of allowances are determined in the Commission Decision 2011/278/EU on the free allocation of emission allowances.

Further information

If you need help with completing electronic forms or have any questions on changes concerning the free allocation of allowances, please contact the Ministry of Economic Affairs and Employment by telephone (Juha Rajala, tel. +358 50 396 0897) or by email at paastokauppa2013@tem.fi.