ESA approves implementation measures for EEA EFTA States’ emission allowances
The EFTA Surveillance Authority (ESA) has approved national implementation measures (NIMs) provided by EEA EFTA States for phase 4 of the European Emissions Trading System (ETS), which will run for the period of 2021-2025. The NMIs list stationary installations that may be granted emissions allowances according to harmonised rules across the EEA.
ESA has concluded, following the same methodology applied by the European Commission, that the installations included in the NIMs are eligible for free allocation of emissions allowances, and that they are aligned with similar measures applied in EU Member States. It also recently adopted revised ETS guidelines in the field of State aid.
Under the EU’s ETS, carbon emissions and carbon allowances are set at a price and auctioned in order to provide revenue for climate action. The ETS’s purpose is to help countries reach their climate targets in a cost-efficient way, allowing companies to receive, buy and trade emission allowances, and sets a cap on the total amount of greenhouse gas emissions allowed for the sectors covered by the ETS.
ESA’s decision is available here.