Rio Tinto

For simplicity and fairness with EU ETS participants, the carbon price paid in a third country should be based on an explicit carbon price. Carbon markets are complex systems with bankable carbon credits, free allowances, compliance offsets, auctions, secondary markets, reserve prices, etc. The same is true for the EU-ETS and finding the actual price paid by a facility might be impossible to achieve.

Rio Tinto has maintained an important presence in Europe for more than 150 years. We have put the low-carbon transition at the heart of our business strategy: combining investments in commodities that enable the energy transition with actions to decarbonise our operations and value chains.

Methodology for calculating embedded free allocation: We support the development of product benchmarks, fallback and process emissions benchmark for each relevant production process based on current EU ETS facility benchmarks. This will ensure a fair comparison between external producers and European producers.