European NGOs have always endorsed an emission trading system based on 100% auctioning of allowances as the best way to generate a visible carbon price through the production and consumption chain.

By now it is also clear that auctioning is the simplest and most transparent way to allocate allowances. Therefore, auctioning of allowances will be an important part of the allocation methodology after 2012. However, for some sectors, free allocation will still be applied after 2012.

Download  Position paper on benchmarking and allocation rules in phase III