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23 min ago 2 min read
European industries will continue to receive free allocations covering around 75% of their emissions under new EU Emissions Trading System (ETS) benchmarks announced today.
The move aims to incentivise industrial electrification and decarbonisation while providing stability and predictability to the EU’s carbon market.
Under the existing EU ETS, the free allocation of allowances is devised sector by sector based on the performance of the cleanest 10% of producers.
The benchmarks come ahead of an EU ETS review due in July.
The main concerns surrounding ETS are balancing aggressive decarbonisation goals with industrial competitiveness, energy price stability, and the structural integrity of the carbon market. Changes are being considered to reflect
A significant drop in carbon prices early in 2026, driven by political debates over weakening the system, has created instability.
Clean hydrogen and energy groups are urging Brussels to as several member states push to weaken it.
More than 150 companies and investors have warned the EU that weakening its ETS by undermining domestic clean energy production.
Energy-intensive industries argue that high carbon costs, coupled with global competition, threaten to push production outside Europe.
The review will seek to align the ETS with the newly endorsed, more ambitious 2040 climate objectives, examining the future trajectory of emission cap.
