Due to preparations for the launch of the fourth phase of the carbon dioxide emission allowance market for the years 2021-2030, the European Commission adopted, inter alia, a decision on the number of allowances to be issued in 2021. In addition, the commission announced the likely date of commencement of future auctions – in its opinion, they may start at the end of January or early February next year – as well as the rules for using allowances from individual EU phases ETS.

As the committee explains, the increase in the linear reduction factor to 2.2% for next year was taken into account when setting the ceiling for next year. This coefficient determines the amount by which the ceiling will decrease each year. According to their decision of November 16, the total number of permits entered into the system next year will amount to almost 1.572 billion, however, this volume does not include the number of allowances to be issued under Chapter II of the EU ETS Directive for aircraft operators.

Under the new Phase 4 rules, allowances to be issued from January 2021 (both auctioned and free) will indicate in which trading period they were issued.

Read more