Setting the cap and benchmark

The EU Commission and the EEA Joint Committee have published  a series of decisions over the summer of 2011 culminating with the announcement of the EEA wide benchmarks for free allocation on 26 September 2011. These decisions essentially form the “allocation plan” for the first two trading periods for the aviation sector - 2012 and 2013-2020.  The information which can be derived includes:
•  total number of allowances (“the cap”) = 97% of average 2004-2006 data in 2012 and 95% in 2013-2020  = A
•  number for auctioning (15%) = B
•  number of allowances in special reserve (3% in 2013-2020 period) = C
•  number to be allocated free of charge = A – (B+C) = D
•  benchmark for free allocation = D (in t CO2) ÷ total baseline data (in t-km)

The benchmark is calculated from the number of allowances to be allocated free of charge (D above) divided by all the applications for free allocation based on 2010 TKM data.

For more information please see the Commission’s webpages:

Allocation of aviation allowances in an EEA-wide Emissions Trading System - Policies - Climate Action - European Commission