The European Commission has published proposed updated benchmark values for the EU Emissions Trading System — used to calculate how many free carbon allowances industrial sites receive — and opened them to consultation for the 2026 to 2030 period.
The benchmarks help determine free allocations of emission allowances under the EU ETS, the bloc’s cap-and-trade carbon market, where companies must surrender allowances for their greenhouse gas emissions, the Commission said in a statement on Monday.
Under the proposals, industry would, on average, continue to receive free allowances covering around 75% of its emissions.
The Commission stated it was using the “legal flexibilities available” and keeping coverage of indirect emissions from electricity use across 14 product benchmarks — meaning some benchmark values would be higher — with a financial impact of around €4 billion over 2026 to 2030.
The benchmark update is required under the ETS Directive and comes alongside a separate Commission proposal presented on 1 April to amend the ETS Market Stability Reserve, a mechanism designed to adjust the supply of allowances.
Consultation and next steps
A four-week public consultation has started, followed by scrutiny by EU member states in the Climate Change Committee, with the Commission due to adopt the benchmarks by the end of June.
The benchmarks are set through an implementing act and are needed for the allocation of free allowances, which is expected shortly after adoption.
The Commission also confirmed an EU ETS review is due in July 2026, and said it plans to propose “sector-specific fallback benchmarks” as part of that revision.
Separately, Commission President Ursula von der Leyen announced in March an “ETS investment booster” budgeted at €30 billion and financed by 400 million ETS allowances, with the funds intended to finance decarbonisation projects.
