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Brief
As part of the 'Fit for 55' package, the European Commission is updating regulations on free allocation adjustments for emission allowances under the EU Emissions Trading System (EU ETS). This initiative aligns with the revised EU ETS Directive, which reflects the EU’s commitment to reducing net greenhouse gas emissions by 55% by 2030 compared to 1990 levels. The regulation will establish updated rules for adjusting free allocations based on activity level changes. Falling under the Climate Action policy area, it is currently in preparation and is expected to be adopted in Q2 2025.
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