Decision from the EU to increase free carbon allowances

The EU Council announced that an agreement was reached in the negotiations with the European Parliament (EP) on the regulation of free carbon allowances for industrial sectors within the scope of the Emission Trading System (ETS).

Accordingly, approximately 121 million free emission allowances will be provided to maintain the competitiveness of energy-intensive sectors and to prevent production from being moved to countries outside the EU where climate rules are lighter.

Within the scope of the agreement, 28 million allowances, which were not previously distributed because obligations regarding energy efficiency audits or climate neutrality plans were not fulfilled, will be added to the approximately 88 million allowances that the EU Commission proposes to be distributed free of charge within the framework of the existing rules.

In addition, an allocation of 5 million will be allocated in the 2026-2030 period to support energy-intensive sectors most exposed to the risk of relocating production outside the EU.

Unused allocations within the scope of this support will be directed to support investments and innovative projects through funds.

The agreement will enter into force after it is officially approved by the EU Council and the EP.

The EU Commission will also determine the implementation rules for allocation calculations based on heat and fuel consumption.

Under the ETS, businesses are required to maintain an emission allowance for each ton of carbon dioxide they emit. Giving some of the allocations free of charge reduces the carbon cost of the industry.