The changes to free allocation are significant for the next phase of the EU ETS. Conditionality, which previously only applied to the worst-performing installations, will now be broadly applicable and have specific ‘made in Europe’ specifications. Fallback benchmarks are adjusted for the near-term to increase allocation between 2026-2030, and the minimum and maximum benchmark reduction values are established for 2031-2035. CBAM phase-in/free allocation phase-out factors have been adjusted to provide a longer time horizon and new rules are in place that would smooth the transition of new sectors into the CBAM regulation.
A weekly cap of what moved EUA prices and a clear view of the week ahead. We set out the drivers, their directional impact, and what matters next.
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