2021 to 2025 allocation

Last update 20.02.2024

The fourth trading period of European emissions trading starts on 01/01/2021. Our aim is to keep you informed about current developments and provide you with the most important documents. As an operator of installations subject to emissions trading, you can apply for a free allocation of emission allowances for the periods between 2021 to 2025 (first allocation period) and 2026 to 2030 (second allocation period).

Source: © lexiconimages – stock.adobe.com

The German Greenhouse Gas Emission Allowance Trading Act (TEHG) and the 2030 German Emissions Trading Ordinance (EHV)

In Germany, the Emissions Trading Directive (ETD) is implemented by the (amended) German Greenhouse Gas Emission Allowance Trading Act (TEHG), which came into force on 25/01/2019 (Act to adjust the legal basis for the further development of the European emissions trading 1 of 18/01/2019, Federal Law Gazette I, page 37). The German Emissions Trading Ordinance (EHV 2030), which is currently being put to the vote in the German Government, will contain substantiating German regulations on the TEHG and allocation rules.

Information and regulations of the European Commission

The EU Free Allocation Rules (FAR) entered into force on 28/02/2019 (Delegated Regulation (EU) 2019/331, Official Journal of the European Union L 59 of 27/02/2019, page 8). It lays down the EU-wide allocation rules for the fourth trading period. The regulation is binding and applies in every Member State. It is thus aimed directly at operators, verifiers and competent authorities.

The FAR contains EU-wide uniform provisions for the free allocation, the application procedure as well as the scope and methodological procedures for data collection. Data collection for the fourth trading period serves to establish the free allocation amount for installations and to provide the data required for updating benchmarks by the European Commission. It contains specific provisions for monitoring, transfer and verification of data as well as allocation rules for incumbents and new entrants, rules on the closure of an installation, the division and merger of installations and the possibility of waiving the free allocation.

The European Commission will adopt further legislation for the fourth trading period, including the updated Carbon Leakage List. In addition, the revised version of the Accreditation and Verification Regulation (AVR), which lays down the requirements for verifying allocation applications, has been in effect since 01/01/2019.

In order to interpret the Regulation, the Commission has published eight Guidance Documents which provides a thorough explanation of the allocation rules and data requirements, particularly for the baseline data report and methodology report/methodology plan.

Provisional allocation amounts for the first allocation period (2021 to 2025)

Here you can find the so-called NIMs list (NIMs = National Implementation Measures) pursuant to Article 14 of Delegated Regulation (EU) 2019/331. The NIMs list contains the provisional allocation quantities of existing stationary installations in Germany for the allocation period 2021 to 2025. It does not include new entrants and installations that will participate in emissions trading in the fourth trading period but will not receive an allocation, as well as aircraft operators. The provisional allocation quantities published here are also published in the Federal Gazette (Bundesanzeiger).

NIMs list 2021 (available in German only)

National allocation table (NAT)

The European Commission has completed its review of the allocation quantities for existing installations for the first allocation period of the fourth trading period (2021 to 2025) and approved the German allocation decisions on 29/06/2021. The allocation quantities shown in the national allocation table (NAT) reflect - based on the allocation applications and applying the correction factors - the final allocation quantities as approved by the European Commission. The allocation quantities take into account the cross-sectoral correction factor (CSCF) of 1 for existing installations (except power generators) in accordance with the European Commission decision on the CSCF of 31/05/2021.

National allocation table (available in German only)

Commission Implementing Decision (EU) 2021/927 determining the uniform cross-sectoral correction factor for the adjustment of free allocations of emission allowances for the period 2021 to 2025