Following up on our previous extra update on the national carbon tax, in this analysis we explain how the Dutch Emissions Authority (NEa) allocates dispensation rights to Dutch ETS-compliant industrial companies. Understanding this allocation mechanism requires an understanding of so-called benchmarks. These are reference frames that reflect the emission intensity of a given manufacturing sector.
The calculation mechanism underlying the actual allocation of dispensation rights to a specific business installation is detailed and therefore complex. The analysis below therefore serves as a general insight.