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6th December 2021
Consumer, Health & Environment Energy & Transport Internal Market

Op-Ed: “Aurubis (C-271/20): Clarifying the Concept of ‘Fuel Benchmark’ Sub-installations for Free EU ETS Allowances Allocation” by Matteo Fermeglia

Introduction

The EU Emission Trading System (EU ETS) is the cornerstone of EU’s regulatory responses to greenhouse gases (GHG) emissions, foremost CO2. The Court of Justice has emphasised that the EU ETS pursues the primary objectives of preventing anthropogenic alteration of the climate and protecting of the environment (ExxonMobil Production Deutschland, C‑682/17). Furthermore, the EU ETS pursues an economic logic whereby allowances are allocated free of charge to encourage investments in techniques and processes that can reduce GHG emissions in an economically efficient way and thus foster of low-carbon innovation.

In Aurubis (C-271/20), the Fifth Chamber of the Court of Justice further clarified the scope of free allowa

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