Questions and Answers on the Commission's decision on standard capacity utilisation factors (SCUFs)
What are SCUFs and why are they needed?
The SCUFs provide information on the typical production capability relating to a number of specific products from installations falling under the EU ETS, based on a given (historical) period.
SCUFs are needed to calculate the amount of free allocation to be provided to new entrants to the ETS, i.e. new installations, or installations that increase production capacity.
Before applying for an allocation from the new entrants' reserve, Member States authorities have to determine the 'activity levels' of new entrant installations in order to calculate the number of free allowances they are entitled to receive. This 'activity level' is determined by multiplying the installed capacity for the production of a given product by the corresponding standard capacity utilisation factor.
The Commission determined the SCUFs by calculating the 80th-percentile of the average annual capacity utilisation of all installations producing a given benchmarked product in the period 2005- 2008.
Sandard Capacity Utilisation Factors (SCUF) are values set ex ante by the European Commission's decision in accordance with the EU ETS rules, by which the initial installed capacity of the installation are multiplied, which are used to determine the level of free allocation of emission permits for new entrants and installations which had a significant capacity extension or reduction.
The standard capacity utilisation factors are particularly important for new entrant industrial installations, for which a product benchmark has been determined (in Annex I to Decision 2011/278/EU), which are eligible for free allocation of emission permits in the period 2013-2020 of the European Union Emission Trading Scheme.
The key parameter influencing the volume of free allocation for these installations is the installation's product-related activity level, which for new entrants can't be determined using historic activity data.
Due to lacking historic data, for the purposes of free allocation of emission permits for new entrant installations this activity level is determined by multiplying the initial installed capacity for the production of the relevant product with the standard capacity utilisation factor, which is set ex ante by the European Commission's decision (the exact values for each SCUF for each product see below).
For installations which had a significant capacity extension or reduction, standard capacity utilisation factors are used to determine the product-related activity level of the added or reduced capacity of the sub-installation concerned.
The standard capacity utilisation factor should be the 80-percentile of the average annual capacity utilisation of all installations producing the product concerned.
The process to determine this product-related activity level of installations is carried out by Member States in accordance with Article 18 of Decision 2011/278/EU. The legal basis for the said process represents Article 10a of the Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.
The values for standard capacity utilisation factors per product benchmark applicable for the period apply 2013 to 2020 are laid down in the Annex to the European Commission Decision of 5 September 2013 on the standard capacity utilisation factor pursuant to Article 18(2) of Decision 2011/278/EU (2013/447/EU) and are set out below.
Product benchmark listed in Annex I of Decision 2011/278/EU |
Standard capacity utilisation factor (SCUF) |
Coke |
0,960 |
Sintered ore |
0,886 |
Hot metal |
0,894 |
Pre-bake anode |
0,928 |
Aluminium |
0,964 |
Grey cement clinker |
0,831 |
White cement clinker |
0,787 |
Lime |
0,813 |
Dolime |
0,748 |
Sintered dolime |
0,784 |
Float glass |
0,946 |
Bottles and jars of colourless glass |
0,883 |
Bottles and jars of coloured glass |
0,912 |
Continuous filament glass fibre products |
0,892 |
Facing bricks |
0,809 |
Pavers |
0,731 |
Roof tiles |
0,836 |
Spray dried powder |
0,802 |
Plaster |
0,801 |
Dried secondary gypsum |
0,812 |
Short fibre kraft pulp |
0,808 |
Long fibre kraft pulp |
0,823 |
Sulphite pulp, thermo-mechanical and mechanical pulp |
0,862 |
Recovered paper pulp |
0,887 |
Newsprint |
0,919 |
Uncoated fine paper |
0,872 |
Coated fine paper |
0,883 |
Tissue |
0,900 |
Testliner and fluting |
0,889 |
Uncoated carton board |
0,863 |
Coated carton board |
0,868 |
Nitric acid |
0,876 |
Adipic acid |
0,849 |
Vinyl chloride monomer (VCM) |
0,842 |
Phenol/ acetone |
0,870 |
S-PVC |
0,873 |
E-PVC |
0,834 |
Soda ash |
0,926 |
Refinery products |
0,902 |
EAF carbon steel |
0,798 |
EAF high alloy steel |
0,802 |
Product benchmark listed in Annex I of Decision 2011/278/EU |
Standard capacity utilisation factor (SCUF) |
Iron casting |
0,772 |
Mineral wool |
0,851 |
Plasterboard |
0,843 |
Carbon black |
0,865 |
Ammonia |
0,888 |
Steam cracking |
0,872 |
Aromatics |
0,902 |
Styrene |
0,879 |
Hydrogen |
0,902 |
Synthesis gas |
0,902 |
Ethylene oxide/ ethylene glycols |
0,840 |