Proposals for allocation in the third trading period is on it's way. The period brings several changes compared to the present trading period. The measures are all meant to improve and further harmonize the EU ETS.
During the coming trading period auctioning will expand as major source of emission allowances for industry. Sectors and sub-sectors found to be exposed to a significant risk of carbon leakage will receive allowances for free based on ambitious benchmarks, but for non exposed industry such allocations will be phased out. These rules imply that a much larger (estimated at more than half the total number of allowances in 2013) and increasing share of allowances will be auctioned. No allowances will be allocated free of charge for electricity production.
In Sweden, sectors exposed to carbon leakage as set out in the trading directive, will have the opportunity to apply for emission allowances during spring 2011.
Allocation in the present perod 2008–2012...
The emission allowances allocated in Sweden 2008–2012 correspond to about 19.8 million tonnes of CO2 equivalents per year. In addition, there is a new entrants' reserve of 2.6 million tonnes of CO2 equivalents for the trading period.
Existing installations in the electricity and district heating sector do not receive any free emission allowances for the 2008–2012 trading period. Existing installations in the Combustion installations sector consequently have to rely entirely on the market to buy emission allowances equivalent to their emissions.
Industrial installations with fuel-related emissions received a somewhat reduced allocation. Allocations to new entrants in the EU ETS are not affected by the more restrictive allocation rules. The final allocation principles are set out in the Emissions Trading Ordinance (SFS 2004:1205). Allocation principles also differ between existing installations and new entrants.
...and in the past 2005–2007
The Swedish national allocation plan for the 2005–2007 trading period was approved by the European Commission in July 2004. The basic principle was that the total quantity of allowances per installation was determined by past emissions during the 1998–2001 period. For installations started in 2001 or later, allocations were based on other years. For some activities where emissions were due to non-renewable raw materials (for example, cement manufacture and ore-based steel production), the allocation also was based on projected production for the years 2005–2007 and on the use of best available technology.
For new entrants, the amount of allowances per installation was determined on the basis of projected production. New power installations were also compared with those of other companies in a similar situation (benchmark). Allocations to other new installations were based on the use of best available technology as well as on projections.
For more information, contact:
The Swedish Environmental Protection Agency: Tel. +46 8 698 10 00. Johan Bogren, Viktor Jonsson.