EU ETS Standard Capacity Utilisation Factor (SCUF)
European Union Carbon Market Glossary


 

 

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

 

 

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Last Updated on Wednesday, 06 April 2016 12:36
 

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