The EU s Emission T rading Scheme and ensuring glob al c ompetitiv eness The policy approaches T o achiev e the EU s o v erall gr eenhouse g as emissions r eduction target for 2030 the sectors c o v er ed by the EU Emissions T rading System EU ETS must r educ e their emissions by at least 43 c ompar ed to 2005 lev els The r evised EU ETS Dir ectiv e which will apply for the period 2021 2030 will enable this thr ough a mix of interlink ed measur es The system of fr ee allocation has also been pr olonged and r evised to focus on sectors at the highest risk of r elocating their pr oduction outside of the EU These sectors including the mining ones listed in the Carbon L eakage List adopted in 2019 will r ec eiv e 100 of their al location for fr ee F or less exposed sectors fr ee allocation is for eseen to be phased out after 2026 fr om a maximum of 30 to 0 at the end of phase 4 After the adoption publication and entering into for c e in 2018 of EU ETS Dir ectiv e Dir ectiv e EU 2018 410 the pr oc ess of adopting the r elated acts c ontinued The EU F r ee Allocation Rules F AR which enter ed into for c e on 28 02 2019 la ys down the EUwide allocation rules for the fourth trading period The F AR c ontains EUwide uniform pr o visions for the fr ee allocation the application pr oc e dur e as well as the sc ope and methodological pr oc edur es for data c ollection Data c ollection for the fourth trading period that took plac e until June 2019 is curr ently used to establish the fr ee allocation amount for installations and to pr o vide the data r equir ed for updating benchmarks by the E ur opean C ommission It c ontains specific pr o visions for monitoring transfer and v erification of data as well as allocation rules for incumbents and new entrants rules on the closur e of an installation the division and merger of in stallations and the possibility of waiving the fr ee allocation In 2019 E ur omines c ontinued to work closely with the E u r opean C ommission and pr o vide the nec essary input in ensuring that the extractiv e raw materials sector r ec eiv es as man y allowanc es as possible during phase IV The 2021 2030 Carbon L eakag e List F ree Alloca tion Rules E ur omines pr o vided all nec essary information to demon strate that the mining sectors ar e exposed to the risk of carbon leakage and ther efor e should be included in the newly adopted Carbon L eakage list for the period 2021 2030 The carbon leakage indicator values calculated by the E ur opean C ommission for post 2020 r ev eal that all mineral raw materials subsectors NA CE 0 7 10 mining of ir on or e NA CE 0 7 29 mining of nonferr ous metals NA CE 08 99 mining of magnesite part of the other mining and quarrying subgr oup as well as NA CE 08 91 mining of chemical and fertiliser minerals c omply with the carbon leakage indicator of minimum 0 2 and will be eligible for fr ee allocation during the period 2021 2030 2021 2030 Proc ess Emissions F ree Allocation F act or the proc ess emissions free allocations fact or will be k ept at 0 97 no annual reduction fact or used for product bench marks will be applied t o proc ess emissions installa tions Table of Contents page 27 of 35 S ustainabi li ty and Competi ti veness