17.5.2011 Official Journal of the European Union L 130/1 II (Non-legislative acts) DECISIONS COMMISSION DECISION of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (notified under document C(2011) 2772) (2011/278/EU) THE EUROPEAN COMMISSION, Having regard to the Treaty of the Functioning of the European Union, EU in the years 2007-2008. The benchmarks should be calculated for products rather than for inputs, in order to maximise greenhouse gas emissions reductions and energy efficiency savings throughout each production process of the sector or the sub-sector concerned. . L. (3)  In order to establish the benchmarks, the Commission Having regard to Directive 2003/87/EC of the European has consulted the relevant stakeholders, including the Parliament and of the Council of 13 October 2003 establishing : L X L sectors and  sub-sectors  concerned. Information a scheme for greenhouse gas emission allowance trading within f ino the benchmarks. installation d : . G ! necessary for setting the benchmarks, installation data the Community and amending Council Directive 96/61/EC (1), h ducti o d d in varticular Article 10a thereof on the production, emissions and energy use, was an P ’ collected as of February 2009 from industry associations, Member States, publicly and commercially available sources and through a survey asking installations to Whereas: participate. (1) Article 10a of the Directive requires that the Community- (4)  To the extent feasible, the Commission has developed wide and fully-harmonised implementing measures for benchmarks for products, as well as intermediate the allocation of free emission allowances should, to products that are traded between installations, produced the extent feasibley determine ex-ante benchmarks SO as from activities 1isted in Annex | to Directive 2003/87/EC to ensure that the free allocation of emission allowances In principle, for each product one benchmark should be takes place in a manner that provides incentives for defined. Where a product is a direct substitute Of another reductions in greenhouse gas emissions and energy product, both should be covered by the same product efficient techniques, by taking account of the most benchmark and the related product definition. efficient techniques, substitutes, alternative production processes, high efficiency cogeneration, efficient energy recovery of waste gases, use of biomass and capture and storage of carbon dioxide, where such facilities are (55 The Commission considered that setting a benchmark for available, and should not provide incentives to increase emissions. Allocations must be fixed prior to the trading period so as to enable the market to function properly. In defining the principles for setting ex-ante benchmarks in individual sectors or sub-sectors, the starting point should be the average performance of the 10 % most efficient installations in a sector or sub-sector in the () OJ L 275, 25.10.2003, p. 32. a product was feasible where, taking into account the complexity of the production processes, product defi- nitions and classifications were available that allow for verification of production data and a uniform application of the product benchmark across the Union for the purposes of allocating emission allowances. No differ- entiation was made on the basis of geography or on the basis of technologies, raw materials or fuels used, so as not to distort comparative advantages in carbon efficiency across the Union economy, and to enhance harmonisation of the transitional free allocation of emission allowances.