An allowance surplus, or very minor deficit, in many sectors has raised questions over the EU ETS's ability to drive industrial decarbonisation
Yearly allowance surplus (green) and deficit (red) in phase 3 by ETS sector, in percentage of the
sector's verified emissions, 2020
Sectors are based on the EU ETS classification. Differences in allowance balances can be explained by the data’s high level of aggregation and differences in the origin of emissions between economic sectors. For example, if metallurgy has a large share of combustion installations, the allowance balance of metallurgy’s process emissions would appear large in comparison with a sector whose emissions mainly originate from process installations.
Source:2022 State of the EU ETS Report, Ecoact based on EEA data