EU ETS Phase IV Free Allocation Webinar

Webinar Announcement: Understanding Free Allocation of EUAs in EU ETS Phase IV

Join our upcoming webinar this September to gain valuable insights into the changes surrounding the free allocation of European Union Allowances (EUAs) in Phase IV of the EU Emissions Trading Scheme (EU ETS) starting from January 2021. This event is exclusively for EU ETS installations and aims to provide clarity on free allocation and support long-term investment decision-making.

As Phase III of the EU ETS concludes on December 31, 2020, with final allowance submissions by April 30, 2021, Phase IV marks the beginning of a ten-year period that is expected to bring significant environmental changes, driven by initiatives such as The Green Deal, which outlines steps towards achieving net zero by 2050. Our webinar is tailored to help industry professionals operating installations covered by the EU ETS understand the basis for free allocation of European allowances during Phase IV. The allocation of allowances at no cost is crucial for planning long-term investments that reduce environmental impact and maintain global competitiveness.

Although the UK is set to leave the EU and the EU ETS on December 31, 2020, establishing its own carbon trading system, the UK government has announced that installations will follow the same rules regarding free allocation, monitoring, and verification as European sites.

Event Details:

Date: Wednesday, September 2nd

Time: 09:30 – 10:30 GMT


Introduction by Simon Watson, Senior Consultant

Review of Phase III allocation and price build by Louis Redshaw, Founder and CEO:

  • Free allocations
  • Purchasing allowances
  • Market Stability Reserve (MSR)
  • International Allowances
  • Benchmark calculations

Potential Phase IV allocation presented by Tom Lord, Head of Trading and Risk Management:

  • Phase IV considerations
  • Historical activity levels
  • Technology Progress benchmarks
  • Carbon Leakage exposure factor
  • Linear Reduction Factor (LRF)
  • Cross-Sectoral Correction Factor (CSCF)
  • Adjustments in free allocation due to activity level changes
  • Data verification
  • Operational changes for increased efficiency
  • Banking and borrowing

Q&A session (10 minutes)

Please note that we will be hosting a Polish language webinar on September 9th for the discussed topics. If you are interested in translations in French, Spanish, Italian, German, or Greek, please contact us, and our colleagues will be happy to assist you.