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European Commission ·

EU sets revised ETS benchmarks for free allocation of emission allowances for 2026–2030

EU ETS installation operators and Member State allocation authorities must apply the revised benchmark values when calculating free allowance allocation for 2026–2030, including 2026.

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On 26 June 2026 the European Commission adopted Implementing Regulation (EU) 2026/1412, setting revised benchmark values for harmonised free allocation of EU Emissions Trading System (ETS) allowances for 1 January 2026 to 31 December 2030, based on 2021–2022 installation efficiency data.
Why it matters
Benchmarks are the efficiency formulas that set how many emission allowances each EU ETS installation receives for free — pegged to the most efficient plants in each sector, so a tighter benchmark means fewer free allowances and a larger volume installations must buy on the carbon market to cover their emissions. The revised values are the binding, directly applicable legal basis for harmonised free allocation across all 54 benchmarks for 2026–2030, including the 2026 allocation year. Allocation volumes are set from the average greenhouse-gas efficiency of the 10% most efficient installations under each benchmark, with reductions extrapolated over a 20-year period and capped between 6% and 50%. Installations excluded by Member States under Articles 27 and 27a, and installations that entered the ETS after the 2021–2022 reference years, are not counted in the benchmark calculation.
Implications
  • — EU ETS installation operators must recalculate their free-allowance entitlement for 2026–2030 using the revised benchmark values in Regulation (EU) 2026/1412, including for the 2026 allocation year — applying superseded benchmark values produces an incorrect allocation entitlement and a shortfall the operator must cover by purchasing allowances.
  • — Member State competent authorities responsible for free allocation must apply the revised benchmark values and exclude installations opted out under Articles 27 and 27a when determining allocations — using prior values or including excluded installations produces legally inconsistent allocation determinations.
Who is affected
  • — EU ETS installation operators calculating free-allowance entitlement
  • — Member State competent authorities responsible for free allocation
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