Changes to benchmarks, CBAM, carbon leakage exposure factor, and the cross-sectoral correction factor will prompt sharp cuts to free allocation during the 2026-2030 period. CBAM sectors will see the greatest total volume reduction, however non-carbon leakage exposed sectors will see their allocation fall to 0 in 2030.
Free allocation has been the primary policy instrument through which the European Union has shielded EU ETS compliant industry from the risk of carbon leakage (outsourcing of production or investment – and thus emissions). Through the EU ETS’s third tradin…
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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