In July 2015, the European Commission presented a legislative proposal to revise the EU ETS for the period after 2020. This is the first step in delivering on the EU’s target to reduce greenhouse gas emissions by at least 40% by 2030 in line with the 2030 climate and energy policy framework and as part of its contribution to the new global climate deal. To achieve the at least 40% EU target, the sectors covered by the ETS have to reduce their emissions by 43% compared to 2005. To this end, the overall number of emission allowances will decline at an annual rate of 2.2% from 2021 onwards, compared to 1.74% currently. Overall, 43% of all emissions allowances will be given out for free and 57% will be auctioned off. The Commission plans to limit the free allowances to 50 sectors, down from 177 today. This is expected to reduce emissions from sectors subject to the ETS by some 556 million tons over the decade −™ equivalent to the annual emissions of the UK