Carbon market analytics


The European Commission Decision of 5 September 2013 concerning national implementation measures for the transitional free allocation of greenhouse gas emission allowances in accordance with Article 11(3) of Directive 2003/87/EC of the European Parliament and of the Council (2013/448/EU - the "NIMs Decision" accompanied by "Questions and Answers on the Commission's decision on national implementation measures (NIMs)" brought determinations for key analytics figures for the entire period 2013 - 2020.



809 315 756 allowances


The maximum amount available for free

to the European industry for 2013
(decreasing annually in subsequent years decrease annually by the linear reduction factor of 1.74%)


Over phase three of the European Union Emissions Trading Scheme (2013-2020), some 43 % (corresponding to 6.6 billion allowances) of the total phase three cap will be allocated for free to industrial installations. Further free allocation will be available to new entrants from the new entrants' reserve. 


It should be noted that these figures are based on installations operating on 1 January 2013. In case of closures, free allocation will be reduced. Free allocation to new installations will not have an impact on the above figures, as they are distributed from a separate account (the new entrants reserve).



Total amount of free allocation by country

in the EU ETS period 2013 - 2020 






Free allowances



164 632 091


293 208 651


77 815 802


40 308 355


7 079 243

Czech Republic

175 374 741


75 369 687


20 190 563


163 625 051


644 707 515


1 248 689 189


120 927 880


88 655 264


10 975 310


41 247 01





Free allowances



664 206 420


18 167 832


85 555


44 586 184


10 249 008


369 497 778


131 326 800


422 619 164


90 169 746


206 855 629


120 642 546


19 027 211


526 303 310


194 457 651

United Kingdom

510 739 800




Total amount of free allocation in 2013 to 2020 for the most important industry sectors





Free Allocation


Basic iron and steel

1 512 388 225


1 110 105 321

Basic chemicals (including fertilizers)

998 567 590

Refinery products (including coke)

878 402 084

Pulp and paper

247 316 201


202 414 638

Extraction of crude and natural gas

176 646 281

Ceramics (including bricks and tiles)

139 715 269

Non-ferrous metals

128 607 153


121 123 660


Volume of allowances to be auctioned in the phase three


Generally the NIMs Decision is directly relevant for the volumes to be granted free of charge for industrial sectors and heat production, on the other hand it also affects the volumes of allowances to be auctioned since all allowances not allocated for free have to be sold in the auction.


Hence, the important new estimation that follows from the NIMs Decision is 8 176 193 157 which denotes the amount of allowances to be auctioned in the period from 2013 to 2020.


This volume has been determined by the Eurupean Commission taking into account:

the limit set by Article 10a(5) of Directive 2003/87/EC,

- the allocation in respect of heat production pursuant to Article 10a(4) set out in the table below,

the size of the new entrants' reserve,

- "the improved overview" of the number of allowances that will be allocated free of charge that results from NIMs Decision.


The said estimation of the amount of allowances to be auctioned follows for purposes of Article 10(1) of Directive 2003/87/EC.


Auction calendar  modifications


The change that follows from the modified auction overall volumes is the consequent adjustment of the auction calendar.

NIMs Decision serves as input to the annual auction calendars throughout phase three and is relevant for determining annual auction volumes in each year from 2013 to 2020.




 8 176 193 157


 Amount of allowances to be auctioned in the period from 2013 to 2020



The auction calendar for 2013 was determined in 2012 without the necessary input on free allocation and was therefore based on an estimate of free allocation for 2013. As a result of the NIMs Decision, some 66.3 million more allowances are to be auctioned for 2013.



The said volume are added to the volume to be auctioned in 2014 (the detailed 2014 calendars are modified by agreement of the Member States, the European Commission and the auction platforms EEX and ICE in accordance with the Auctioning Regulation - seeEuropean Commission communication of 18 November 2013).





66.3 million


  Volume of the increase in the number of allowances to be auctioned for 2013 as a result of the NIMs Decision



In effect, the total quantity of allowances to be auctioned in 2014 amounts to 926,218,500. This amount is comprised as follows: 



Auction platformStatesDetails
559,575,000 EEX 25 participating Member States Weekly auctions on Mondays, Tuesdays and Thursdays
204,534,500 EEX Germany Weekly auctions on Fridays
55,565,000 EEX Poland 12 auctions on Wednesdays
106,544,000 ICE United Kingdom

Fortnightly auctions on Wednesdays


(Source: European Commission communication of 18 November 2013)


The above table is formulated under the following reservations:


(1) The volumes do not yet include allowances to be auctioned for the Member States of the European Free Trade Association (EFTA) that are members of the European Economic Area (EEA). These allowances total 8,422,182 for 2013 and 8,827,000 for 2014. The EEA-EFTA States intend to make use of the transitional common auction platform and the Commission is currently discussing the arrangements with them. It is not yet clear when the transitional common auction platform will start to auction allowances for the EEA-EFTA States.

(2) The above calendars do not take into account the Commission's draft amendment of the Auctioning Regulation for 'back-loading' a significant volume of allowances, which will affect the figures for individual years, including 2014. The calendars will be modified accordingly for the remainder of the year following adoption of this draft amendment.

(3) In 2014, pursuant to Article 10c of the ETS Directive, seven new Member States intend to allocate a total of 129,505,064 allowances to certain electricity generators free of charge. This volume has been deducted from the volume of allowances to be auctioned.


Linear reduction factor value


In 2014 and each subsequent year, the total quantity of allowances determined for 2013 on the basis of Article 9 and 9a of Directive 2003/87/EC decreases by a linear factor of 1,74 % from 2010, amounting to 38 264 246 allowances.



Volumes of annual free allocation for heat production



Free allocation under Article 10a(4)

of Directive 2003/87/EC


104 326 872




93 819 860


84 216 053


75 513 746


67 735 206


60 673 411




54 076 655


47 798 754

The values for Cross-Sectoral Correction Factor and Standard Capacity Utilisation Factor (SCUF)
The NIMs Decision has also enabled the clearance on the exact values for Cross-Sectoral Correction Factors and  SCUF.
See also:


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Last Updated on Tuesday, 21 October 2014 16:39


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