EU Cuts Back On Free Carbon Emission Allocations

Law360, New York (April 27, 2011, 6:21 PM EDT) -- The European Commission adopted a new methodology Wednesday for how it will allocate free carbon emissions allowances among industrial sectors, cutting down on the number of free allowances doled out in previous years.

Beginning in 2013, auctioning will become the primary vehicle for allocation of carbon emissions allowances in the power sector, putting a price on many once-free allowances. New European Union-wide rules, including strict greenhouse gas benchmarks, will dictate the distribution of the free allowances in other sectors, the commission said.

The commission’s adoption of...
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