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

The phase 3 of the EU Emissions Trading System (2013–2030) is significantly different from phases 1 and 2. The free allocation of allowances is based on harmonised EU-level rules, and national allocation plans are no longer used over the trading period 2013–2030.

The total number of emission allowances and the number and means of allowances given away for free and the auctioning of allowance, among others, have been decided at Union level.

In 2013, the EU ETS had a total of 2,039 million emission allowances, and this number will decrease each year by around 37,4 million allowances. In the period 2013–2020, power generators no longer receive any free allowances, but have to buy them from auctions or the market.

Heat generation and some industries will still receive a share of their emission allowances for free. However, the proportion of free allowances will decrease gradually year-on-year. Energy-intensive industries that face international competition receive their emission allowances for free based on EU-level benchmark values.

A total of 450 installations located in Finland will receive free allowances in 2013–2020. 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 Finnish Emissions Trading Act (311/2011) may be revised 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 revised number of allowances are determined in the Commission Decision 2011/278/EU on the free allocation of emission allowances.

Inquiries:

If you need help with completing the electronic forms or have any questions on changes concerning the free allocation of allowances, please contact the Ministry of Employment and the Economy either by phone (Juha Rajala) or by sending email to the address paastokauppa2013@tem.fi