Linear Reduction Factor (LRF)
Since 2013, there has been a cap on emissions from EU ETS compliant entities. The LRF is the rate at which the cap is reduced annually.
Following the 2023 revision of the ETS Directive , the EU ETS cap is set to bring emissions down by 62% by 2030 compared to 2005 levels. To achieve this, the reduction factor has been increased to 4.3% per year over the period 2024-2027 and to 4.4% per year from 2028.
