The European Commission has finally published the draft baseline values of the Emissions Trading System (ETS) for 2026-2030 and has opened them for public discussion until June 8. Callanish notes that the proposed benchmarks, which were originally planned to be implemented in the first quarter, are based on the emissions figures of the top 10% of installations in 2021 and 2022.
According to the Commission, for a significant number of installations, these indicators are significantly higher than the previous control levels. The baseline reduction rates compared to the previous period, 2021-2025, are set within a certain range based on the observed improvement in performance across all sectors.
Among the products used in the ferrous metallurgy, the base values (consumption rates per ton) for 2026-2030 are 0.143 for coke, 0.086 for agglomerated iron ore and 1.248 for pig iron. This compares with 0.217, 0.157 and 1.288, respectively, in the previous period. The strength index of carbon steel EAF is 0.142, and high-alloy steel EAF is 0.176 versus 0.215 and 0.268, respectively, earlier.
A source at one of the European blast furnace plants told Callanish that his company had hoped for higher figures than those that were published, but the proposed values did not bring relief to the steel industry.
The proposed regulation refers to the delegated regulation of 2024, which changed the regulatory requirements for hot-rolled metal, adding to the definitions of products covering the production of steel using direct reduction technology.
Steel production in accordance with the DRI hot metal standard should not be taken into account when calculating the average greenhouse gas efficiency at installations for the revised control values for 2026-2030, the Commission's draft document says.
The same decree included hydrogen produced by electrolysis of water in the hydrogen or ammonia regulations. These changes should be taken into account when determining the revised standards for the period from 2026 to 2030.
It was not possible to accurately determine emissions from product benchmark substations, in particular those that import or export intermediates whose production falls within the system boundaries of another product benchmark. Thus, the efficiency of greenhouse gas use by the relevant substations should not be taken into account when determining the revised control values, the document says. This applies, in particular, to the production of cast iron.
The Commission will approve the benchmarks by the end of June. The law is necessary to allocate free industry allowances for 2026. This is
