CarbonTiers · User guide
ETS Tool User Guide
CarbonTrack ETS — Allocation & Compliance Workbook
EU ETS Directive 2003/87/EC · FAR (EU) 2019/331 · CBAM (EU) 2023/956
This guide explains how to model an installation covered by the EU Emissions Trading System: scope test, sub-installations and benchmark-based free allocation, the allocation ledger, compliance position, flexibility, the compliance calendar, carbon cost, indirect cost compensation, the CBAM phase-out and reporting. Regime rules, dates and tables are generated from the tool’s own records.
- 13
- workbook modules
- 56
- benchmarks
- 7
- benchmark sector groups
- 9
- annual CBAM phase-out factors
- Version
- 1.0
- Last reviewed
- 19 October 2026
- Current edition
- carbontiers.com/calculator/ets/guide
This guide is updated with the tool. Counts and factor tables are generated from the registries the tool calculates with. The latest edition is always at the address above.
1About the tool
CarbonTrack ETS manages the allocation and compliance obligations of an installation under an emissions trading system in a single workbook: whether the installation is in scope, the free allocation it receives, the year-end short or long position, the deadlines and the carbon cost. It is built for operators, compliance teams and consultants.
| Group | Module | Content | In trial |
|---|---|---|---|
| Installation & scope | Installation & Scope | Identity, permit, scope test | Open |
| Installation & scope | Sub-installations | Benchmark, activity level, carbon leakage | Open |
| Allocation | Activity Level (ALR) | Activity level report and allocation adjustment | Licence required |
| Allocation | Benchmark & Allocation | Free allocation, CBAM phase-out | Open |
| Allocation | Allocation Ledger | Issuance, adjustment, transfer | Licence required |
| Compliance | Compliance Position | Verified emissions, short / long | Open |
| Compliance | Flexibility Mechanisms | Banking, borrowing, offsets, extra reserve | Licence required |
| Compliance | Compliance Calendar | Reporting, verification, surrender dates | Licence required |
| Carbon economics | Carbon Cost Model | Price scenarios, corridor, net cost | Licence required |
| Carbon economics | Indirect Cost Compensation | Electricity carbon cost, State aid compensation | Licence required |
| Carbon economics | CBAM Bridge | 2026–2034 free allocation phase-out | Licence required |
| Carbon economics | Abatement vs Allowance | Cost per tonne, break-even price | Licence required |
| Reporting | Report Centre | Excel workbook and PDF report | Licence required |
2Quick start
- 1
Pick the compliance year
Each year is a closed record; switching the year never edits a previous year’s data.
- 2
Describe the installation
On Installation & Scope enter identity, permit details and annual emissions; the scope test result appears immediately.
- 3
Add sub-installations
For each sub-installation choose the benchmark, the activity level and the carbon leakage status.
- 4
Review free allocation
Benchmark & Allocation shows allocation per sub-installation and the CBAM phase-out.
- 5
Check the compliance position
Compare verified emissions with allocation, carry-over and flexibility use.
- 6
Follow deadlines and cost
The Compliance Calendar shows the deadlines; the Carbon Cost Model shows price scenarios.
- 7
Export the report
Download the Excel workbook and the PDF report from the Report Centre.
3EU ETS rules in the tool
| Rule | EU ETS |
|---|---|
| Legal basis | Directive 2003/87/EC as amended by (EU) 2023/959 |
| Currency | EUR |
| Scope threshold | ≥ 25,000 t CO₂e/yr or 20 MW |
| MRV below the threshold | No |
| Allocation basis | Historical activity level (ex-ante) |
| Activity level adjustment threshold | 15% |
| Offset cap | Not accepted |
| Banking | Yes |
| Borrowing | No |
| Penalty for non-surrender | 100 EUR/allowance |
| Make-good year | No |
| Price corridor | No |
| Extra reserve | No |
| Phase | Years |
|---|---|
| Phase 4 | 2021–2025 |
| Phase 4 | 2026–2030 |
Free allocation rests on the historical activity level and is adjusted when the activity level deviates beyond the threshold in the table. Borrowing from future years is not available and international credits are not accepted.
4Installation and scope
The scope test compares annual emissions with the regime threshold and the total rated thermal input. The operator name can be taken from the CarbonTrack company profile; installation name, permit number and activity code belong to the installation and are entered on this page.
- Sub-installation types: product benchmark, heat benchmark, fuel benchmark and process emissions.
- Each sub-installation carries its carbon leakage status and CBAM sector; together they set its free-allocation share and its CBAM phase-out.
5Benchmarks and free allocation
Free allocation = Benchmark × Activity level × Carbon leakage share × CBAM factor × Correction factorsThe tool holds 56 benchmarks for 2026–2030. Sector groups: Refining & Coke Industry, Iron, Steel & Metals, Mineral Industry (Cement, Lime, Glass, Ceramics, Gypsum), Chemicals, Fertilisers & Petrochemicals, Pulp and Paper Industry, Specialty & Other Products, Fallback Benchmarks.
| Year | Free-allocation share |
|---|---|
| 2026 | 97.5% |
| 2027 | 95.0% |
| 2028 | 90.0% |
| 2029 | 77.5% |
| 2030 | 51.5% |
| 2031 | 39.0% |
| 2032 | 26.5% |
| 2033 | 14.0% |
| 2034 | 0.0% |
The Activity Level (ALR) page keeps the activity level report and computes the allocation adjustment. The Allocation Ledger records issuance, adjustment and transfer by year.
6Compliance position and flexibility
Position = Allocation + Carry-over + Flexibility use − Verified emissions- Banking: unused allowances carry forward to later years.
- Borrowing: not available in the EU ETS.
- Offsets: not accepted in the EU ETS.
- Penalty: paying the per-allowance penalty in the rules table does not release the obligation to surrender the missing allowances.
7Compliance calendar
| Step | EU ETS |
|---|---|
| Free allocation issued | 28 February (t+1) |
| Verified emissions report | 31 March (t+1) |
| Verification | 31 March (t+1) |
| Activity level report | 31 March (t+1) |
| Allowance surrender | 30 September (t+1) |
8Carbon cost, indirect cost and abatement
- Carbon Cost Model: net compliance cost under low, central and high price scenarios.
- Indirect Cost Compensation: the carbon cost passed through in electricity prices and State aid compensation; 8 sectors with aid intensity by period (2021–2025 Period (75% Base); 2026–2030 Period (80% Revised Base)).
- CBAM Bridge: the allocation and cost effect of the free-allocation phase-out, 2026–2034.
- Abatement vs Allowance: compares the cost per tonne of an abatement measure with the carbon price and returns the break-even price.
9Saving and reporting
| Action | Description |
|---|---|
| Workbook file (.etsworksheet) | ETS data lives in its own file, separate from the CarbonTrack workbook. Download it to open on another device. |
| Excel | Workbook with every page, for audit and calculation trail. |
| PDF report | For people who will read, sign and file it; produced through the browser’s print dialog with “Save as PDF”. |
10Troubleshooting
| Symptom | Likely cause | Fix |
|---|---|---|
| Allocation lower than expected | CBAM phase-out or carbon leakage share | Check the CBAM and carbon leakage flags of the sub-installation |
| Allocation adjustment applied | Activity level deviated beyond the threshold | Review the Activity Level (ALR) page |
| Offsets ignored | The EU ETS does not accept offsets | Expected behaviour |
| Last year’s data missing | Records are year-scoped | Select that year in the top bar |
| Module locked | Trial scope or licence | See the pricing page for plan details |
11Glossary
| Term | Meaning |
|---|---|
| EU ETS | European Union Emissions Trading System |
| Allowance | The right to emit one tonne of CO₂e |
| Free allocation | Allowances given without charge on the basis of benchmarks |
| Benchmark | Reference emission value per product, heat or fuel |
| Sub-installation | The part of an installation for which free allocation is calculated |
| Activity level | Production, heat or fuel quantity of a sub-installation |
| Banking | Carrying unused allowances forward |
| CBAM | EU Carbon Border Adjustment Mechanism |
| ALR | Activity level report |
12References
- Directive 2003/87/EC as amended by (EU) 2023/959.
- Delegated Regulation (EU) 2019/331 (free allocation rules).
- Implementing Regulation (EU) 2019/1842 (activity level changes).
- Regulation (EU) 2023/956 (CBAM).
Revision history
| 19 October 2026 | First edition. |