EU Outlines Methodology to Calculate Trading Allowances Starting in 2013

BRUSSELS—The European Commission April 27 finalized “benchmarks” for 52 product groups covered by the European Union’s Emissions Trading Scheme (ETS), detailing the methodology for determining the level of free emissions allowances available for each sector under the next phase of the trading program.

Based on the new rules, EU power production utilities, other than those that provide district heating, will have to compete in an EU-wide auction to purchase emissions allowances above a percentage of their benchmark levels during the next phase of the trading scheme, which runs from Jan. 1, 2013, through the end of 2020.

“Installations that meet ...