Allocation of this year free allowances has started

Allocation of free allowances for the period of 2022 is provided to the Lithuanian companies participating in the EU Emissions Trading System. 53 companies will receive them.

The largest number of allowances will go to such industrial giants as Orlen Lietuva, Akmenės cementas and Lifosa, other large companies, heating networks, power plants and boiler houses. The total number of allowances issued is 2,558,095.

Free allowances were received by those companies whose level of activity, according to the Environmental Protection Agency and the Ministry of the Environment, did not change significantly over the past year (did not drop more than 15%).

The remaining 10 companies will be allocated free allowances in agreement with the European Commission. The Environmental Project Management Agency (APVA) allocated free allowances for this year to all listed companies on 28 February. The proposed quotas have been approved by the European Commission.

Allocation of free allowances is based on the latest data submitted to the Environmental Protection Agency in 2021.

Emissions trading is a key instrument in EU climate change policy to regulate GHG emissions. This trading system operates in all EU Member States, as well as in Iceland, Norway and Liechtenstein. It currently covers more than 11 thousand GHG emitting installations.

Nearly 90 Lithuanian companies participated in EU ETS during the period of 2013-2020. The number of allowances issued to each is steadily declining each year, except for companies with a high risk of carbon leakage to a third countries.

It is estimated that free allowances must cease to exist until 2030. Due to the declining amount of free allowances, operators need to invest in technologies that reduce GHG emissions.

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