This in-depth analysis for the Committee on Budgetary Control concerns the system used for the free allocation of emission allowances within the EU ETS. It reviews recent press criticisms of the free allocation system, reviews the transparency of the system and assesses the risk it creates unintended distortions. It estimates the cost of free allocation to the EU budget and how these proceeds might be spent. It concludes with three policy recommendations.Source : © European Union, 2023 - EP