This document is Carbon Market Watch’s feeback to the ongoing revision of the Free Allocation Regulation (FAR).

The FAR revision is a necessary step to ensure the last years of the free allocation system are coherent with the aim of a full phase-out by 2030 (or 2034 for CBAM sectors) and provide the investment signals necessary to funnel funding into industrial decarbonisation.

For these reasons, Carbon Market Watch (CMW) does not endorse the Free Allocation Regulation in its current version.

CMW therefore calls for the rejection of the FAR proposal as currently drafted.