This was an in-person event.

The revised EU ETS Directive (EU) 2023/959 was adopted on 10 May 2023 and published in the EU Official Journal six days after. The European Commission now needs to update several regulatory acts for the revised EU ETS to be implemented in 2024. One important update concerns the Free Allocation Regulation (FAR), that sets the rules for the allocation of allowances to those sectors under the risk of carbon leakage.

In the EU ETS, products under the carbon leakage list receive free allocation – at the benchmark level – for free. Following the adoption of the EU Carbon Border Adjustment (CBAM), the free allocation provided to energy intensive selected goods will be gradually phased out and replaced by the CBAM “protection”. The revised FAR is expected to be adopted by the end of 2023.

This meeting was intended as a brainstorming roundtable with a small group of invited stakeholders and policy makers to brainstorm on the upcoming revision of the FAR, in response to the ETS revision/Fit For 55.

Agenda     ERCST Slides    Euroalliages Slides