Cefic has submitted its response to the European Commission public consultation: Revision of the benchmark values for free allocation of emission allowances (2026-2030). Cefic reaffirms its support for the 2050 climate neutrality objective and notes the central role of the EU Emissions Trading System for delivering the EU’s climate ambition. Achieving this objective, however, requires that the carbon price signal is matched by enabling conditions for industry, including lead markets for low-carbon products, access to competitive low-carbon energy and feedstock, the deployment of energy and carbon infrastructure, and strong carbon leakage protection. In the absence of these conditions, preserving effective free allocation and indirect cost compensation is essential to limit carbon cost exposure for sectors under severe pressure. Striking the right balance between climate ambition and industry’s capacity to deliver remain critical for the European econom
Ahead of the adoption of the implementing regulation, Cefic considers the points below to be critical and calls for them to be taken into account.
- The proposed 50% reduction in fallback benchmarks is a key concern, given the limited methodological basis underpinning this approach. This leaves a steep reduction in free allocation
the coming years . If the calculation methodology is not changed, the best option would be to suspend the update. - In some cases draft values for product benchmarks are in line with expectations, but steep reductions in carbon black, ethylene oxide and styrene, and nitric acid remain problematic