(1)

Auctioning is the rule for the allocation of emission allowances from 2013 onwards to operators of installations within the scope of the emissions trading system of the Union (EU ETS). Eligible operators will continue to receive free allowances in the trading period 2026 to 2030. The amount of allowances that each such operator receives is determined based on Union-wide harmonised rules set out in Directive 2003/87/EC and Commission Delegated Regulation (EU) 2019/331 (2).

(2)

Member States were required to submit to the Commission by 30 September 2024 their National Implementation Measures (NIMs), comprising a list of installations covered by Directive 2003/87/EC on their territory and including information on production activity, transfers of heat and gases, electricity production and emissions at sub-installation level, over the five-year period from 2019 to 2023 (‘baseline period’) in accordance with Annex IV to Delegated Regulation (EU) 2019/331.

(3)

To ensure data quality and comparability, Member States submitted their NIMs using the electronic template provided by the Commission in accordance with Article 14(1) of Delegated Regulation (EU) 2019/331, which included the relevant data per installation. Member States also submitted a methodology report setting out the data collection process conducted by their authorities.

(4)

Given the wide range of information and data submitted, the Commission first analysed the completeness of all the NIMs. Where the Commission noted that submissions were incomplete, it requested additional information from the Member States concerned. In reply to those requests, the relevant authorities submitted additional relevant information in order to complete the submitted NIMs.

(5)

The Commission then assessed the NIMs against the criteria contained in Directive 2003/87/EC and in Delegated Regulation (EU) 2019/331, taking into account the Commission's guidance documents to Member States. Those consistency checks constituted the second phase of the NIMs assessment.

(6)

The consistency checks of the NIMs were carried out for each Member State and each installation separately and in comparison with other installations in the same sector. As part of that comprehensive assessment, the Commission analysed the consistency of the data itself and with the Union-wide rules for harmonised free allocation for phase 4 (allocation period 2026-2030) laid out in Delegated Regulation (EU) 2019/331. The Commission examined the eligibility of installations for free allocation, the division of installations into sub-installations and their boundaries, in order to apply the correct benchmark. Considering that the data is used for calculating the revised benchmark values, the Commission paid particular attention to the attribution of emissions to each sub-installation. Furthermore, given the significant impact on allocations, the Commission analysed in detail the data concerning calculation of the historical activity levels of installations during the baseline period. The Commission also examined whether the inclusion of an installation in the NIMs lists was in line with the provisions of Annex I to Directive 2003/87/EC.

(7)

Further in-depth analyses of the data for specific installations per Member State that have had an impact on the calculation of the revised benchmark values were conducted. The specific assessments were based on a risk assessment analysis concerning the quality and consistency of data that took into account several criteria including the emissions intensity for each product benchmark sub-installation.

(8)

Based on the results of those checks, the Commission carried out a detailed assessment of installations where potential irregularities in the application of the harmonised allocation rules were identified. For those installations, further clarification was sought from the competent authorities of the Member States concerned.

(9)

In light of the results of that compliance assessment, the NIMs of Belgium, Bulgaria, Czechia, Denmark, Estonia, Ireland, Italy, Germany, Greece, France, Croatia, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Hungary, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia and Finland were found to be compatible with the criteria set out in Directive 2003/87/EC and Delegated Regulation (EU) 2019/331. Therefore, the installations included in the NIMs by those Member States have been found eligible for free allocation .

(10)

The NIMs of Spain and Sweden were found compatible with the criteria set out in Directive 2003/87/EC and Delegated Regulation (EU) 2019/331, except for certain installations that were included on the list referred to in Article 11(1) of Directive 2003/87/EC without meeting the criteria required under that Directive and Delegated Regulation.

(11)

Spain and Sweden each proposed the inclusion of one installation in their territory, where during the preceding relevant five-year period referred to in Article 11(1), second subparagraph, of Directive 2003/87/EC emissions from the combustion of biomass that complies with the criteria set out pursuant to Article 14(1) of that Directive contribute on average to more than 95 % of the total average greenhouse gas emissions. Such installations are to be excluded from the EU ETS pursuant to point 1 of Annex I to Directive 2003/87/EC. Therefore, the inclusion of those installations on the list referred to in Article 11(1) of Directive 2003/87/EC is to be rejected for the baseline period.