Harmonised free allocation of emission allowances

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pp. 9-16


3. DEVELOPMENT OF POLICY OPTIONS; 3.1. Identifying relevant, credible and proportionate policy options: The IA sets out four allocation methods (product benchmarks, and three so-called fallback approaches (for installations that also produce products not covered by a product benchmark): heat benchmark, fuel benchmark, and process emissions (grandfathered)). For each of these methods, different policy options are systematically defined as to how to define the benchmarks against which emissions reductions are to be calculated.

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