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European Union

European Commission Amends EU ETS Allowances for Denmark and Luxembourg

Strategic Insights

— 2 min read

The European Commission has amended the EU ETS allowances for Denmark and Luxembourg, allowing them to use previously cancelled allowances for compliance under Article 9 of Regulation (EU) 2018/842. The decision comes after the two countries notified the Commission of their intention to revise their percentages for determining the total quantity of ETS flexibility.

Denmark and Luxembourg notified the Commission of their decision to revise the percentage previously notified, as per Article 6(3), second subparagraph, of Regulation (EU) 2018/842. The Commission has therefore amended the total quantity of cancelled EU ETS emission allowances that may be taken into account for compliance of the two countries under Article 9 of Regulation (EU) 2018/842. The Netherlands also notified the Commission of its intention to cancel EU ETS allowances corresponding to 0% of the maximum specified in Annex II to Regulation (EU) 2018/842.

Key Takeaways:

  • The European Commission has issued a decision amending Implementing Decision (EU) 2020/2126 as regards the total quantities of cancelled EU ETS allowances that may be taken into account for certain Member States' compliance under Regulation (EU) 2018/842.
  • Denmark and Luxembourg notified the Commission of their decision to revise the percentage previously notified for determining the total quantity of ETS flexibility that they may use for compliance under Article 9 of Regulation (EU) 2018/842.
  • The Commission has amended the total quantity of cancelled EU ETS emission allowances that may be taken into account for compliance of Denmark and Luxembourg under Article 9 of Regulation (EU) 2018/842.
  • The Netherlands notified the Commission of its intention to cancel EU ETS allowances corresponding to 0% of the maximum specified in Annex II to Regulation (EU) 2018/842.
  • The main changes include:

+ Denmark: The total quantities of cancelled EU ETS emission allowances that may be taken into account for compliance of Denmark under Article 9 of Regulation (EU) 2018/842 is determined by applying the percentage notified by Denmark in 2024 to the value of the calculated 2005 greenhouse gas emissions in each of the years 2026 to 2030.

+ Luxembourg: The total quantities of cancelled EU ETS emission allowances that may be taken into account for compliance of Luxembourg under Article 9 of Regulation (EU) 2018/842 is determined by applying the percentage notified by Luxembourg in 2024 to the value of the calculated 2005 greenhouse gas emissions in each of the years 2026 to 2030.

+ Netherlands: The Netherlands has notified the Commission of its intention to cancel EU ETS allowances corresponding to 0% of the maximum specified in Annex II to Regulation (EU) 2018/842.

Statistics:

  • The total quantities of cancelled EU ETS emission allowances that may be taken into account for compliance of Denmark and Luxembourg under Article 9 of Regulation (EU) 2018/842 are determined by applying the percentages notified by the two countries in 2024 to the value of their calculated 2005 greenhouse gas emissions in each of the years 2026 to 2030.
  • The percentages notified by Denmark and Luxembourg in 2024 are 0% and 0% respectively.
  • The maximum specified in Annex II to Regulation (EU) 2018/842 for the Netherlands is 0%.
  • The decision was published on 17 July 2025.

Sources:

  • COMMISSION IMPLEMENTING DECISION (EU) 2025/1405 of 16 July 2025
  • Regulation (EU) 2018/842 of the European Parliament and of the Council
  • Commission Implementing Decision (EU) 2020/2126 of 16 December 2020
  • OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj
  • OJ L 426, 17.12.2020, p. 58, ELI: http://data.europa.eu/eli/dec_impl/2020/2126/oj

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