Free allocation of allowances in 2021-2030

From 2021 onwards, the list of installations eligible for free allocation will be updated every five years, that is, in phase 4 for the period 2021–2025 and for the period 2026–2030. The free allocation will be based on EU-level benchmark values, which will be updated for each period to reflect technological progress.

In preparation for the free allocation in 2021–2025, the Emissions Trading Directive decrees that member states report to the European Commission on the operations of the installations that apply for allowances allocated free of charge. This information must be submitted to the Commission by 30 September 2019. Installations whose information has not been reported to the Commission may not be allocated allowances for free.

Applications for free allocation of allowances must be submitted to the Energy Authority by 30 April 2019. The application deadline is 30 June 2019 for installations that start their operations in the first half of 2019. Along with the application, installations must submit a monitoring methodology plan to the Energy Authority and detailed information about the installation’s operations to the Ministry of Economic Affairs and Employment. A verification report on both documents must also be submitted.

The detailed rules for free allocation of allowances during the trading period 2021–2030 will be issued by forthcoming Commission’s implementing legislation. The content of the implementing regulations will be confirmed later. More detailed guidelines on the gathering and verification of installation-specific data will be available once the Commission has adopted the legislation on the free allocation of allowances.

Further information: juha.rajala(at) and emilie.yliheljo(at)