The European steel industry receives free allocation under the EU ETS on the basis of five product benchmarks (coke, sinter, hot metal, electric arc furnace-EAF carbon steel, EAF high alloy steel) and the fuel and heat fall back benchmarks for those processes that are not covered by the above product benchmarks..
What is benchmarking in ETS?
Benchmarks are the measures used to determine how many free allowances are distributed to installations under the EU ETS. Free allowances mean that installations are not exposed to the true carbon cost of the ETS..
What is benchmarking in ETS?
Benchmarks are the measures used to determine how many free allowances are distributed to installations under the EU ETS. Free allowances mean that installations are not exposed to the true carbon cost of the ETS.Jan 5, 2021.
What is the EU ETS benchmark for hydrogen?
EU ETS benchmark for hydrogen = 6.84 tCO2e / tonne productAll relevant process elements directly or indirectly linked to the production of hydrogen and the separation of hydrogen and carbon monoxide are included..
What is the EU ETS refinery benchmark?
Consistent with the final interpretation of the EU ETS stipulation, the benchmark was defined as the arithmetic average of these 10 lowest performance indices, i.e. 29.5 t CO2/kt CWT compared to the average of 37.0 t CO2/kt CWT for the total mainstream refinery population..
What is the hot metal benchmark in EU ETS?
Product benchmarks, such as for “hot metal” (the output of blast furnaces), are set as the average emissions of the 10% least emission-intensive producers of a given product across the EU ETS. Every installation in the sector receives free allocation up to the benchmark level..
Who sets the cap in EU ETS?
The cap is determined by a country's set targets. The emissions cap is gradually lowered, reducing the total volume of emissions. By 2020, emissions from sectors falling under the EU ETS must be 21% lower than the emissions in 2005. The European Commission has proposed a 43% reduction by 2030..
Benchmarks are the measures used to determine how many free allowances are distributed to installations under the EU ETS. Free allowances mean that installations are not exposed to the true carbon cost of the ETS.Jan 5, 2021
Set up in 2005, the EU ETS is the world's first international emissions trading system.
Setting an emissions intensity benchmark for the whole electricity sector. This limits how much carbon dioxide can be emitted per unit of electricity. Coal-fired power plants above the benchmark can purchase credits from wind and solar farms or energy efficiency schemes to help them reach the benchmark.
The main benchmark for steel is the hot metal from blast furnaces (BF), which covers over 70% of the sector's emissions. There are 25 installations of primary steel produc- tion (BF) in the EU; so only 2.5 steel installations set the benchmark for all.
To improve the orderly functioning of the EU ETS, longer term structural reforms need to be introduced. The European Commission (2012) proposed six non-exhaustive alternative structural measures: a. Increasing the EU reduction target to 30% in 2020; Page 5 b.
In Phase IV, benchmark values will be updated twice. The emissions baseline of 2013-2017 will be used for the first half (2021-2025), and the baseline emissions of 2018-2022 will be used for the second half (2025-2030).
Oct 12, 2021installations covered by the EU ETS producing the product. The use of benchmarks to determine free allocation has the advantage that all
Oct 12, 2021Since the start of phase 3 of the EU ETS (2013-2020), free allocation has been based on benchmarks, which constitute an important element of the
The revised benchmark values were determined on the basis of verified information on the GHG emission intensities provided by operators of the installations and reported in the National Implementation Measures (NIMs) pursuant to Article 11 of Directive 2003/87/EC4 for the years 2016 and 2017.
Alignment with Actual Production Levels
More flexible rules have been set to better align the level of free allocation with actual production levels. Allocation to individual installations may be adjusted annually to reflect relevant increases and decreases in production. The threshold for adjustments was set at 15% and will be assessed on the basis of a rolling average of two years. To .
Focus on Sectors at Highest Risk
Free allocation will focus on sectors at the highest risk of relocating their production outside of the EU. These sectors will receive 100% of their allocation for free. For less exposed sectors, free allocation is foreseen to be phased out after 2026 from a maximum of 30% to 0 at the end of phase 4 (2030). The list of sectors deemed to be at the r.
New and Growing Installations
A considerable number of free allowances will be set aside for new and growing installations. This number consists of 1. allowances that were not allocated from the total amount available for free allocation by the end of phase 3 (2020), and 2. 200 million allowances from the Market Stability Reserve.
Benchmark update eu ets
EU Allowances (EUA) are climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of CO2 emitted in the previous year. The emission allowance is defined in Article 3(a) of the EU ETS Directive as being an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which shall be valid only for the purposes of meeting the requirements of this Directive and shall be transferable in accordance with the provisions of this Directive.
EU Allowances (EUA) are climate credits (or carbon
EU Allowances (EUA) are climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of CO2 emitted in the previous year. The emission allowance is defined in Article 3(a) of the EU ETS Directive as being an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which shall be valid only for the purposes of meeting the requirements of this Directive and shall be transferable in accordance with the provisions of this Directive.
