أدوات السياسة البيئية والتقييم.
ومن شأن الاستخدام الأوسع لنظم الاتجار بالانبعاثات (أو الضرائب البيئية) أن يكون من أكثر الطرق فعالية وفعالية لتعزيز النمو الأخضر. وتقوم منظمة التعاون والتنمية في الميدان الاقتصادي بتحليل وتعزيز استخدام أدوات قائمة على علامات مميزة لسنوات عديدة. وقد نفذ معظم العمل تحت رعاية الفريق العامل السابق المعني بالسياسات البيئية الوطنية، وأعيد تسميته مؤخرا إلى الفرقة العاملة المعنية بإدماج البيئة والسياسات الاقتصادية. كما أنجز جزء من العمل تحت رعاية الاجتماعات المشتركة لخبراء الضرائب والبيئة، حيث يجتمع الخبراء في المقام الأول من وزارتي المالية والبيئة مرتين في السنة. ويخدم هذه الاجتماعات من قبل مركز أويسد للسياسة الضريبية والتحليل والبيئة مديرية، مع مساهمات أيضا من أجزاء أخرى من المنظمة.
وتسهم نظم الاتجار بالانبعاثات في تحقيق الكفاءة الاقتصادية عن طريق تيسير تخفيضات الانبعاثات حيثما يكون ذلك أرخص من أجل تحقيقها. ويسمح للملوثين الذين يجدون مكلفين بتخفيض انبعاثهم بشراء بدلات انبعاث من الملوثين يمكن أن يخفضوا بتكاليف أقل. إن & لوت؛ تماما & [رسقوو]؛ فإن تكاليف خفض وحدة إضافية للانبعاثات ستعادل، وستخفض التكاليف الإجمالية للوصول إلى هدف بيئي معين. ويمكن الاطلاع على تقييمات لاحقة لعدد من نظم التصاريح القابلة للتداول في المنشور المعنون "التصاريح القابلة للتداول: تقييم السياسات وتصميمها وإصلاحها".
هناك نوعان رئيسيان من أنظمة التداول: & لدكو؛ كاب-أند-تريد سيستمز & رديقو؛ و & لدكو؛ أنظمة الأساس والائتمان & رديقو ؛. وفي نظام الحد الأقصى للتبادل التجاري، يكون الحد الأعلى للانبعاثات ثابتا، وتصدر تصاريح الانبعاث إما بالمزاد العلني أو توزع مجانا وفقا لمعايير محددة. في ظل نظام خط الأساس والائتمان، لا يوجد حد ثابت للانبعاثات، ولكن الملوثات التي تقلل من انبعاثاتها أكثر مما كانت عليه خلاف ذلك ملزمة لكسب & لوت؛ أرصدة & [رسقوو]؛ التي تبيعها للآخرين الذين يحتاجون إليها من أجل الامتثال للوائح التي تخضع لها.
وبصفة عامة، توصي منظمة التعاون والتنمية في الميدان الاقتصادي بأن تكون مزادات التصاريح أو الانبعاثات في أنظمة الحد الأقصى والتجارة مزاد علني بدلا من تسليمها مجانا ("جدكو"). ويتأكد المزاد من أن الإيجارات المرتبطة بالسياسات البيئية تذهب إلى السلطات العامة، بدلا من الاستيلاء عليها من قبل الملوثين الحاليين. غير أن معظم التصاريح توزع حتى الآن مجانا. ومن ناحية أخرى، حيثما تستخدم الضرائب البيئية، فإنها غالبا ما تشمل بعض التمايز في المعدلات الضريبية عبر الملوثين. وبالتالي، أي من هذه النهج تتبع عادة & لدكو؛ نص الكتاب & رديقو؛ والوصفات الطبية، والوثيقة ذات الصلة بالضرائب البيئية ونظم التصاريح القابلة للتداول في الممارسة تناقش بالتفصيل أي من البديلين أداء أفضل من وجهة نظر الكفاءة الاقتصادية.
أما الاستخدام الحالي لنظم الاتجار بالانبعاثات (وعدد من صكوك السياسات البيئية الأخرى) فهو موثق في قاعدة بيانات متاحة بحرية. وتوفر قاعدة البيانات معلومات عن المشاكل البيئية التي يعالجها النظام التجاري، وعن البند الذي يجري تداوله، والشركاء التجاريون، وأي عائدات ناتجة عن بيع التصاريح، وما إلى ذلك. وتستخدم قاعدة البيانات كثيرا من جانب موظفي الخدمة المدنية والأكاديميين وممثلي الصناعة، وما إلى ذلك، وتستند منظمة التعاون والتنمية في الميدان الاقتصادي اعتمادا كبيرا عليها لإجراء تقييمات منتظمة للسياسات في البلدان الأعضاء والبلدان الشريكة.
وفي حين أن معظم نظم تجارة الانبعاثات ذات طابع وطني أو إقليمي، أنشأ الاتحاد الأوروبي نظاما مشتركا للانبعاثات لانبعاثات ثاني أكسيد الكربون (الاتحاد الأوروبي لانبعاثات غازات الدفيئة)، وهو ما ربطت به أيضا بعض البلدان الأوروبية الأخرى. وتم أيضا التوصل إلى اتفاق بشأن السعي إلى ربط نظام التجارة الإلكترونية في الاتحاد الأوروبي ونظام تداول الانبعاثات الأسترالي في المستقبل. بروتوكول كيوتو هو أيضا نوع من نظام التجارة الدولية، التي تشمل كلا & لسو؛ كاب والتجارة في [رسقوو]؛ (مثل التزامات الحد من الانبعاثات في البلدان المدرجة في المرفق الأول) و & لسو؛ خط الأساس والائتمان & [رسقوو]؛ (مثل إمكانيات توليد الائتمانات عن طريق إجراء تخفيضات في الانبعاثات في البلدان النامية مثلا).
وبوجه عام، فإن ربط نظم الانبعاثات سيعزز الكفاءة الاقتصادية عن طريق السماح بإجراء تخفيضات حيثما يكون أرخص من ذلك. غير أنه من المهم التأكد من الحفاظ على السلامة البيئية للنظم عند حدوث الربط. مع خط الأساس والائتمان و [رسقوو]؛ النظم، فإنه يمكن أن يكون من الصعب التحقق إلى أي مدى تخفيضات الانبعاثات هي & لوت؛ إضافية & [رسقوو]؛ وندش]؛ أي إلى أي مدى يمثلون شيئا مختلفا عما كان سيحدث في أي حال.
قضية واحدة مثيرة للقلق مع & [رسقوو]؛ سقف والتجارة و [رسقوو]؛ النظام، ومع أنواع أخرى من الحدود العليا على الانبعاثات، هو عندما يتم الجمع بين هذه مع أدوات أخرى & نداش؛ مثل مخططات الدعم المختلفة. وهناك خطر يتمثل في أن الصكوك الإضافية لا تؤدي إلا إلى تكاليف إضافية، دون أن تجلب أي فوائد إضافية. وتناقش هذه المسائل بالتفصيل في الوثيقة التفاعلات بين نظم تداول الانبعاثات وغيرها من أدوات السياسة المتداخلة.
المشاركة في نظام الاتحاد الأوروبي لتجارة الانبعاثات (الاتحاد الأوروبي إتس)
مقدمة في نظام تداول الانبعاثات في الاتحاد الأوروبي، بما في ذلك كيفية عمل نظام الحد الأقصى للتبادل التجاري، وكيفية تخصيص البدلات المجانية، وتفاصيل عن الامتثال، وإدراج الطيران في النظام، ومخطط التعطيل في المملكة المتحدة بالنسبة للبعثات الصغيرة والمستشفيات.
نظرة عامة.
وتعتبر إتس الاتحاد الأوروبي أكبر نظام تجاري لانبعاثات غازات الاحتباس الحراري متعدد الدول، متعدد القطاعات في العالم.
وهو يضم أكثر من 11،000 محطة توليد الكهرباء والمنشآت الصناعية في جميع أنحاء الاتحاد الأوروبي مع حوالي 1000 من هذه في المملكة المتحدة. وهي تشمل محطات توليد الكهرباء ومصافي النفط والمنصات البحرية والصناعات التي تنتج الحديد والصلب والاسمنت والجير والورق والزجاج والسيراميك والمواد الكيميائية.
ويمكن أيضا أن تشمل المنظمات الأوروبية الأخرى، بما في ذلك الجامعات والمستشفيات، منظمات أخرى، اعتمادا على قدرة احتراق المعدات في مواقعها. كما يتم تغطية شركات الطيران المتجهة إلى أو من مطار أوروبي من قبل إتس الاتحاد الأوروبي.
وتوضح هذه الإرشادات سقف الاتحاد الأوروبي ونظامه التجاري، بما في ذلك تفاصيل مراحل تسليم النظام. وهو يقدم معلومات عن طلب المملكة المتحدة للبدلات المجانية للمرحلة الثالثة من خلال تدابير التنفيذ الوطنية، فضلا عن تفاصيل الامتثال والتحقق. وهناك أيضا أقسام بشأن تنظيم الانبعاثات لقطاع الطيران وخطة التعطيل الصغيرة للمستشفيات والمصارف في المملكة المتحدة.
الغطاء والتجارة.
تعمل إتس الاتحاد الأوروبي على أساس "سقف والتجارة"، لذلك هناك "سقف" أو الحد المحدد على إجمالي انبعاثات غازات الدفيئة المسموح بها من قبل جميع المشاركين التي يغطيها النظام ويتم تحويل هذا الحد الأقصى إلى بدلات الانبعاثات القابلة للتجارة.
وتخصص مخصصات الانبعاثات القابلة للتداول للمشاركين في السوق؛ في الاتحاد الأوروبي إتس يتم ذلك عن طريق مزيج من تخصيص الحرة والمزادات. يمنح أحد البدلات لصاحب الحق الحق في انبعاث طن واحد من ثاني أكسيد الكربون (أو ما يعادله). يجب على المشاركين الذين تغطيهم إتس إتحاد الاتحاد الأوروبي مراقبة انبعاثاتهم والإبلاغ عنها كل عام، وتسليم مخصصات كافية للانبعاثات لتغطية انبعاثاتهم السنوية.
والمشاركون الذين يحتمل أن ينبعثوا أكثر من تخصيصهم لديهم خيار بين اتخاذ تدابير لخفض انبعاثاتهم أو شراء بدلات إضافية؛ إما من السوق الثانوية - مثل الشركات التي تحتفظ بدلات لا تحتاج إليها - أو من الدول الأعضاء التي تعقد مزادات. ويمكن الاطلاع على مزيد من المعلومات في صفحة إتس للاتحاد الأوروبي: صفحة ويب أسواق الكربون.
ولا يهم ما إذا كانت هناك تخفيضات في الانبعاثات (من حيث الموقع الفعلي) لأن وفورات الانبعاثات لها نفس الأثر البيئي أينما كانت.
والأساس المنطقي وراء الاتجار بالانبعاثات هو أنه يتيح تخفيض الانبعاثات بحيث تكون تكلفة التخفيض أقل، مما يقلل التكلفة الإجمالية لمعالجة تغير المناخ.
كيف يعمل التداول: مثال افتراضي مبسط.
تاريخيا التركيب A وتركيب B على حد سواء تنبعث 210 طن من CO2 سنويا. في إطار عملية تخصيص الاتحاد الأوروبي يتم منحهم 200 بدل لكل منهما. وفي نهاية السنة الأولى، سجلت انبعاثات قدرها 180 مليون طن من أجل التركيب A حيث قامت بتركيب مرجل ذو كفاءة في استخدام الطاقة في بداية السنة مما أدى إلى خفض انبعاثات ثاني أكسيد الكربون. ويصبح الآن حرا في بيع بدلات الفائض في سوق الكربون.
بيد أن التركيب باء أدى إلى انبعاث 220 مليون طن من ثاني أكسيد الكربون لأنه يحتاج إلى زيادة طاقته الإنتاجية وكان من المكلف جدا أن يستثمر في تكنولوجيا كفاءة استخدام الطاقة.
وبناء على ذلك، اشترى التركيب باء بدلات من السوق، كانت قد أتيحت لأن المنشأة ألف استطاعت أن تبيع بدلاتها الإضافية.
ويتمثل الأثر الصافي في أن الاستثمار في خفض الكربون يحدث في مكان أرخص، وتقتصر انبعاثات ثاني أكسيد الكربون على 400 بدل صادر لكلتا المنظمتين.
مراحل تسليم نظام تداول الانبعاثات.
وقد تم حتى الآن تسليم أو تنفيذ ثلاث مراحل تشغيلية من إتس للاتحاد الأوروبي على الرغم من أنه من المتوخى أن يستمر المخطط بعد عام 2020:
المرحلة الأولى (1 كانون الثاني / يناير 2005 إلى 31 كانون الأول / ديسمبر 2007)
اكتملت هذه المرحلة. ويمكن الاطلاع على مزيد من التفاصيل حول هذه المرحلة على نسخة المحفوظات الوطنية للصفحة الإلكترونية للمرحلة الأولى من المرحلة الأوروبية للاتحاد الأوروبي للاتصالات الأوروبية.
المرحلة الثانية (1 كانون الثاني / يناير 2008 إلى 31 كانون الأول / ديسمبر 2018)
وتزامنت المرحلة الثانية من إتس الأوروبي مع أول فترة التزام كيوتو. واستندت المرحلة الثانية إلى الدروس المستخلصة من المرحلة الأولى، وتم توسيعها لتشمل انبعاثات ثاني أكسيد الكربون من الزجاج والصوف المعدني والجبس والحرق من إنتاج النفط والغاز في الخارج والبتروكيماويات والأسود الكربوني وأعمال الصلب المتكاملة.
وفي المرحلة الثانية، وضعت كل دولة عضو خطة تخصيص وطنية تحدد مجموع الكميات التي تخصصها الدولة العضو خلال تلك المرحلة وكيف اقترحت توزيع تلك البدلات على كل مشغل من مشغليها الذين تغطيهم النظام. وكان لا بد من موافقة كل من اللجنة الأوروبية على كل خطة عمل وطنية. ونشرت خطة العمل الوطنية للمرحلة الثانية من خطة العمل الوطنية المعتمدة في 16 آذار / مارس 2007.
ويمكن الاطلاع على مزيد من التفاصيل حول هذه المرحلة على النسخة الوطنية من المحفوظات من النسخة الوطنية للمحفوظات من الصفحة الإلكترونية للمرحلة الثانية من الشبكة الأوروبية للاتصالات المتنقلة الأوروبية.
المرحلة الثالثة (1 كانون الثاني / يناير 2018 إلى 31 كانون الأول / ديسمبر 2020)
وتستند المرحلة الحالية من إتس إتحاد الاتحاد الأوروبي على المرحلتين السابقتين وتنقح بشكل كبير لتقديم مساهمة أكبر في التصدي لتغير المناخ بما في ذلك: سقف على نطاق الاتحاد الأوروبي على عدد البدلات المتاحة وزيادة في المزاد العلني لتلك البدلات، وكذلك كما مخطط المملكة المتحدة لخفض تكاليف الامتثال لبعثات صغيرة والمستشفيات.
وسيخفض سقف الاتحاد الأوروبي عدد البدلات المتاحة بنسبة 1.74٪ كل عام، مما سيؤدي إلى انخفاض إجمالي بنسبة 21٪ عن الانبعاثات التي تم التحقق منها بحلول عام 2020 بحلول عام 2020. وسيتم حساب المسار من نقطة انطلاق منتصف المرحلة الثانية وسيصف وهو انخفاض منخفض منذ عام 2018 فصاعدا.
التخصيص المجاني للبدلات.
وتتاح لجميع القطاعات التي يشملها الاتحاد الأوروبي لخدمات الاتصالات السلكية واللاسلكية، باستثناء معظم قطاع الطاقة في الاتحاد الأوروبي، مخصصات مجانية للبدلات من أجل المساعدة في انتقالها إلى اقتصاد منخفض الكربون.
وبالإضافة إلى ذلك، فإن القطاعات الصناعية المعرضة لخطر كبير للمنافسة من البلدان التي لا توجد فيها تكاليف مماثلة للكربون (انظر القسم المتعلق بتسرب الكربون في إتس للاتحاد الأوروبي للحصول على مزيد من المعلومات) مؤهلة للحصول على نسبة أعلى من البدلات مجانا.
وفي عام 2018، طلب من الدول الأعضاء أن تقدم إلى المفوضية الأوروبية قائمة بالعدد الأولي للبدلات المجانية التي ستصدر لكل منشأة صناعية في المرحلة الثالثة، يشار إليها باسم "تدابير التنفيذ الوطنية" أو "نيم". وقدمت المملكة المتحدة تقاريرها الوطنية إلى المفوضية الأوروبية في 12 ديسمبر / كانون الأول 2018، ثم قدمت تعديلات جديدة في نيسان / أبريل 2018.
وفي 5 أيلول / سبتمبر 2018، أعلنت المفوضية الأوروبية الانتهاء من عملية التحقق من التخصيص الحر لبدلات الاتحاد الأوروبي لتكنولوجيا الاتصالات الإلكترونية في كل دولة من الدول الأعضاء. وأعلن أيضا أن هناك حاجة إلى عامل تصحيح مشترك بين القطاعات لضمان أن يظل التوزيع المجاني في جميع أنحاء الاتحاد الأوروبي ضمن الحد الأقصى المنصوص عليه في التوجيه إتس. وقد خفض هذا العامل المخصصات األولية لكل تركيب من أنظمة إتس في االتحاد األوروبي بنسبة 5.73٪ في عام 2018، ليصل إلى 17.56٪ في عام 2020. وبالتالي، فإن متوسط تخفيض المخصصات هو 11.58٪ خالل الفترة 2018-2020.
وتبين القائمة الأولى أدناه أرقام تخصيص مجانية في المرحلة الثالثة لكل منشأة صناعية في المملكة المتحدة، على النحو الذي وافقت عليه المفوضية الأوروبية في 18 ديسمبر 2018. وتظهر القائمة الثانية أرقام تخصيص مجانية محدثة للمرحلة الثالثة، مع الأخذ بعين الاعتبار أي تغييرات في التخصيص المتفق عليها في نيمس في المملكة المتحدة للمنشآت الفردية اعتبارا من 30 أبريل 2017، على سبيل المثال بسبب توقف جزئي، تخفيضات كبيرة في القدرات أو حيث دخلت المنشآت الاتحاد الأوروبي إتس (الداخلين الجدد). وسوف يتم تحديث هذه القائمة على أساس سنوي لمراعاة التغييرات التي طرأت على التخصيص على مدار المرحلة.
التخصيص المجاني للمرحلة الثالثة كما تمت الموافقة عليه في تدابير التنفيذ الوطنية في المملكة المتحدة.
بدف، 635KB، 14 باجيس.
قد لا يكون هذا الملف مناسبا لمستخدمي التكنولوجيا المساعدة. طلب نسق يسهل الوصول إليه.
إذا كنت تستخدم التكنولوجيا المساعدة (مثل قارئ الشاشة) وتحتاج إلى إصدار من هذا المستند بتنسيق أكثر سهولة، يرجى مراسلتنا على البريد الإلكتروني: communicationence@decc. gsi. gov. uk. من فضلك قل لنا ما الشكل الذي تحتاجه. وسوف يساعدنا إذا كنت تقول ما التكنولوجيا المساعدة التي تستخدمها.
جدول التخصیص الوطني في المملکة المتحدة: التخصیص المجاني للمرحلة الثالثة بما في ذلك التغییرات في التخصیص: یونیو 2017.
بدف، 727 كيلوبايت، 31 صفحة.
قد لا يكون هذا الملف مناسبا لمستخدمي التكنولوجيا المساعدة. طلب نسق يسهل الوصول إليه.
إذا كنت تستخدم التكنولوجيا المساعدة (مثل قارئ الشاشة) وتحتاج إلى إصدار من هذا المستند بتنسيق أكثر سهولة، يرجى مراسلتنا على البريد الإلكتروني: communicationence@decc. gsi. gov. uk. من فضلك قل لنا ما الشكل الذي تحتاجه. وسوف يساعدنا إذا كنت تقول ما التكنولوجيا المساعدة التي تستخدمها.
جدول التخصيص الوطني في المملكة المتحدة: المرحلة الثالثة التخصيص الوطني بما في ذلك التغييرات: أبريل 2018.
بدف، 397 كيلوبايت، 32 صفحة.
قد لا يكون هذا الملف مناسبا لمستخدمي التكنولوجيا المساعدة. طلب نسق يسهل الوصول إليه.
إذا كنت تستخدم التكنولوجيا المساعدة (مثل قارئ الشاشة) وتحتاج إلى إصدار من هذا المستند بتنسيق أكثر سهولة، يرجى مراسلتنا على البريد الإلكتروني: communicationence@decc. gsi. gov. uk. من فضلك قل لنا ما الشكل الذي تحتاجه. وسوف يساعدنا إذا كنت تقول ما التكنولوجيا المساعدة التي تستخدمها.
جدول التخصيص الوطني في المملكة المتحدة: المرحلة الثالثة التخصيص الوطني بما في ذلك التغييرات: أبريل 2018.
مس إكسيل سبريادشيت، 73.2KB.
قد لا يكون هذا الملف مناسبا لمستخدمي التكنولوجيا المساعدة. طلب نسق يسهل الوصول إليه.
إذا كنت تستخدم التكنولوجيا المساعدة (مثل قارئ الشاشة) وتحتاج إلى إصدار من هذا المستند بتنسيق أكثر سهولة، يرجى مراسلتنا على البريد الإلكتروني: communicationence@decc. gsi. gov. uk. من فضلك قل لنا ما الشكل الذي تحتاجه. وسوف يساعدنا إذا كنت تقول ما التكنولوجيا المساعدة التي تستخدمها.
جدول التخصيص الوطني في المملكة المتحدة: المرحلة الثالثة التخصيص الوطني بما في ذلك التغييرات: أبريل 2017.
بدف، 407KB، 24 باجيس.
قد لا يكون هذا الملف مناسبا لمستخدمي التكنولوجيا المساعدة. طلب نسق يسهل الوصول إليه.
إذا كنت تستخدم التكنولوجيا المساعدة (مثل قارئ الشاشة) وتحتاج إلى إصدار من هذا المستند بتنسيق أكثر سهولة، يرجى مراسلتنا على البريد الإلكتروني: communicationence@decc. gsi. gov. uk. من فضلك قل لنا ما الشكل الذي تحتاجه. وسوف يساعدنا إذا كنت تقول ما التكنولوجيا المساعدة التي تستخدمها.
تسرب الكربون والاتحاد الأوروبي إتس.
تسرب الكربون هو مصطلح يستخدم لوصف احتمال زيادة الانبعاثات العالمية لغازات الدفيئة عندما تقوم الشركة بتحويل الإنتاج أو الاستثمار خارج الاتحاد الأوروبي لأنها - في غياب اتفاق المناخ الدولي الملزم قانونا - فإنها غير قادرة على تمرير الزيادات في التكاليف الناجم عن إتس الاتحاد الأوروبي لعملائها دون خسارة كبيرة من حصة السوق.
وأفضل طريقة لمعالجة تسرب الكربون ستكون اتفاقا دوليا ملزما قانونا بشأن المناخ. ومن شأن ذلك أن يخلق مجالا متكافئا للصناعة داخل الاتحاد الأوروبي وخارجه فيما يتعلق بحساب تكاليف الكربون.
في غضون ذلك، يوفر إتس الاتحاد الأوروبي آليتين للتخفيف من مخاطر تسرب الكربون. أولا، القطاعات التي تعتبر في خطر كبير من تسرب الكربون مؤهلة للحصول على تخصيص مجاني بنسبة 100٪ من البدلات حتى المؤشر القياسي للقطاع. وهذا مصدر مهم للإغاثة، حيث أن القطاعات غير المعرضة للخطر ستحصل على 80٪ من مخصصاتها مجانا في عام 2018، وتتناقص سنويا إلى 30٪ في عام 2020 بهدف الوصول إلى 0٪ (أي المزاد الكامل) في عام 2027.
وتسمح الآلية الثانية للدول الأعضاء بتعويض القطاعات المعرضة لخطر كبير من تسرب الكربون نتيجة للتكاليف غير المباشرة للاتحاد الأوروبي في مجال تكنولوجيا المعلومات والاتصالات (أي من خلال الزيادات المترابطة في أسعار الطاقة الكهربائية في الاتحاد الأوروبي)، شريطة أن تصمم المخططات ضمن الإطار الذي وضعته المفوضية الأوروبية ( انظر القسم الخاص بمخطط تعويض تسرب الكربون غير المباشر للحصول على مزيد من المعلومات).
وتؤيد حكومة المملكة المتحدة بقوة مبدأ التوزيع الحر في غياب اتفاق دولي بشأن المناخ. ونعتقد أن التوزيع المجاني المتناسب للبدلات يعطي الإغاثة للقطاعات المعرضة لخطر كبير من تسرب الكربون، دون أن يثير الحواجز أمام التجارة الدولية. غير أننا نشعر بالقلق لأن الأشخاص الأكثر تعرضا للخطر قد لا يحصلون على تعويض كاف في المستقبل إذا لم يتم إصلاح القواعد الحالية للاتحاد الأوروبي بشأن التجارة الإلكترونية (إتس) للمرحلة الرابعة من إتس للاتحاد الأوروبي.
وتعترف حكومة المملكة المتحدة بمخاوف الصناعة بشأن القدرة التنافسية وتسرب الكربون، وهي ملتزمة بضمان حماية القطاعات التي تتعرض بالفعل لخطر كبير من تسرب الكربون من هذه المخاطر. وفي حزيران / يونيه 2017، نشرنا مشروعا بحثيا بتكليف من وزارة الطاقة وتغير المناخ واضطلع به فيفيد إكونوميكس و إكوفيس، الذي يحقق في حدوث تسرب الكربون حتى الآن والدوافع الأساسية لتسرب الكربون لمجموعة مختارة من القطاعات الصناعية وتقييم التدابير المتخذة للتخفيف من آثارها.
ويعرض التقرير خطر تسرب الكربون ل 24 قطاعا صناعيا، وتم إنتاجه بالتشاور مع أصحاب المصلحة في الصناعة. ويظهر تحليل النمذجة أنه في غياب أي تدابير للسياسات المخففة (مثل التخصيص المجاني للبدلات)، لا يوجد مخصص لإمكانات الحد من انبعاثات الكربون، ولا توجد زيادة في تنظيم الكربون خارج الاتحاد الأوروبي، فإن عددا من القطاعات معرضة لخطر التسرب. وبالنظر إلى هذه الافتراضات، يظهر تحليل النمذجة معدلات أعلى من تسرب الكربون مما كان متوقعا أن يحدث في الواقع. الآراء الواردة في التقرير هي آراء كتابها، ولا تمثل موقفا رسميا من حكومة المملكة المتحدة.
والتقرير النهائي، ودراسات الحالة وما يرتبط بها من استعراض الأقران متاحة:
تقييم حالة تسرب الكربون من أجل التخصيص المجاني للبدلات.
ويتم تقييم القطاعات المعرضة لخطر تسرب الكربون على أساس مجموعة من المعايير والعتبات المحددة في توجيه الاتحاد الأوروبي بشأن التجارة الإلكترونية. وقد تم الاتفاق على قائمة القطاعات التي تعتبر معرضة لخطر التسرب للفترة 2018-2017 من خلال إجراء الاتحاد الأوروبي في مجال علم الكوميتولوجيا في ديسمبر / كانون الأول 2009، مع إضافة إلى القائمة في قرارات المفوضية الأوروبية اللاحقة.
ويسمح توجيه الاتحاد الأوروبي بشأن التجارة الإلكترونية (إتس) باستعراض القطاعات المعرضة للخطر كل خمس سنوات، مع إمكانية إضافة قطاعات إلى القائمة على أساس سنوي مخصص. وفي 5 أيار / مايو 2017، نشرت المفوضية الأوروبية مشروع قائمة القطاعات للفترة 2018-1919، استنادا إلى المعايير الكمية والنوعية المنصوص عليها في توجيهات إتس. وسيتم تقديم مسودة قائمة تسرب الكربون إلى لجنة الاتحاد الأوروبي المعنية بتغير المناخ للتصويت عليها بعد قليل، وبعدها يجب إرسالها إلى البرلمان الأوروبي والمجلس لمدة ثلاثة أشهر للتدقيق قبل اعتماده.
وفي 31 أغسطس / آب 2018، ردت المملكة المتحدة على مشاورة المفوضية الأوروبية بشأن منهجية تحديد قائمة تسرب الكربون للفترة 2018-2019.
غير المباشرة خطة تعويض تسرب الكربون.
في بيان الخريف لعام 2018، أعلن المستشار أن الحكومة تعتزم تنفيذ تدابير للحد من تأثير السياسة على تكاليف الكهرباء في معظم الصناعات كثيفة الكهرباء، ابتداء من عام 2018 وتستحق حوالي 250 مليون جنيه استرليني خلال فترة مراجعة الإنفاق.
وكجزء من هذا، التزمت الحكومة بتعويض أكثر الشركات كثافة في استخدام الكهرباء للمساعدة في تعويض التكلفة غير المباشرة لأسعار الكربون و إتس الاتحاد الأوروبي، رهنا بالمبادئ التوجيهية للمساعدة الحكومية. وفي ميزانية عام 2017، أعلن المستشار أنه سيتم تمديد التعويض عن التكاليف غير المباشرة لسعر سعر الكربون و إتس الأوروبي إلى 2019 إلى 2020.
واعتمدت المفوضية الأوروبية المبادئ التوجيهية المنقحة لمساعدة الدولة بشأن التعويض عن التكاليف غير المباشرة للاتحاد الأوروبي في يونيو 2018. وتورد هذه المبادئ التوجيهية القطاعات التي تعتبر معرضة لخطر كبير من تسرب الكربون بسبب تكاليف الانبعاثات غير المباشرة، وتقديم تفاصيل عن الحد الأقصى مستويات التعويض التي يمكن إتاحتها لهم. ويجب أن تصمم أي خطة للتعويضات من الدول الأعضاء ضمن الإطار الذي وضعته المفوضية الأوروبية.
في أكتوبر 2018، أطلقت ديك و بيس التشجيع على الطاقة مكثفة التشاور خطة التعويض، والتي تحدد مقترحاتنا لأهلية وتصميم حزمة التعويضات.
وأتاحت المشاورة، التي أغلقت في كانون الأول / ديسمبر 2018، فرصة لجميع المهتمين بالحزمة للتعليق على المقترحات، مما ساعدنا على ضمان توجيه التعويضات إلى الشركات الأكثر تعرضا لخطر تسرب الكربون نتيجة للطاقة والمناخ تغيير السياسات.
بعد النظر المفصل في الردود والتخليص من المعونة الحكومية لمجموعة التعويضات إتس الاتحاد الأوروبي، في مايو 2018 نشرنا استجابة الحكومة للتشاور وتصميم خطة التعويض النهائي للاتحاد الأوروبي إتس. بدأت المملكة المتحدة تسديد المدفوعات فيما يتعلق بالتكاليف غير المباشرة ل إتس في عام 2018.
أما بالنسبة لتعويضات سعر الكربون، التي لا تزال تخضع لموافقة الدولة على المعونة من المفوضية الأوروبية، فإننا نتوقع نشر الإرشادات في وقت لاحق من الصيف والبدء في الدفع بعد ذلك بوقت قصير.
احتیاطي المشارکین الجدد.
ويخصص احتياطي المشتركين الجدد (نر) جانبا من بدلات الاتحاد الأوروبي، محجوزة للمشغلين الجدد أو المشغلين الحاليين الذين زادت قدراتهم بشكل كبير. ويتحمل منظمو االتصاالت األوروبية لالتحاد األوروبي في االتحاد األوروبي مسؤولية إدارة وتقييم جميع تطبيقات نر.
ويمكن الاطلاع على مزيد من المعلومات عن البدلات في نظام إتس الأوروبي: صفحة البدلات.
الامتثال ل إتس الاتحاد الأوروبي.
ويتحمل منظمو االتحاد األوروبي لالتصاالت األوروبية المسؤولية عن إنفاذ االمتثال للوائح االتحاد األوروبي لخدمات االتصاالت، بما في ذلك المهام التشغيلية مثل منح وصيانة التصاريح وخطط االنبعاثات) للطيران (والرصد واإلبالغ) بما في ذلك خطط الرصد (، وتقييم تقارير االنبعاثات التي تم التحقق منها) التقارير)، وتقييم الطلبات المقدمة إلى السجل الوطني للبراءات، وتحديد التخفيضات في المخصصات نتيجة للتغيرات في القدرة أو وقف الأنشطة، وتبادل المعلومات مع أوكاس بشأن أنشطة المدققين.
لغرض احتساب العقوبات المدنية، يحدد بيس قيمة سعر الكربون إتس للاتحاد الأوروبي التي يستخدمها المنظم. وينشر هذا القرار في تشرين الثاني / نوفمبر من كل عام:
في 7 أغسطس 2018، أطلقنا استشارة حول عدد من التعديلات الفنية على لوائح خطة تجارة انبعاثات غازات الدفيئة 2018 وذلك لتبسيط ومواءمة عقوبات إتس الاتحاد الأوروبي في الانتقال إلى المرحلة الثالثة، وتحسين الوضوح وتقليل العبء على الشركات. واختتمت المشاورة في 19 أيلول / سبتمبر 2018.
لمزيد من المعلومات حول كيفية الامتثال مع الاتحاد الأوروبي إتس يرجى زيارة:
الرصد والإبلاغ والتحقق والاعتماد.
وتهدف إرشادات المفوضية الأوروبية بشأن نظام الاعتماد والتحقق إلى مساعدة مشغلي جميع المنشآت الثابتة ومشغلي الطيران وهيئات التحقق والهيئات التنظيمية على إجراء عمليات التحقق باستمرار في جميع أنحاء الاتحاد الأوروبي. ويوفر معلومات عملية ومشورة بشأن عملية ومتطلبات التحقق السنوي المطلوبة من قبل الاتحاد الأوروبي إتس التوجيه، المفوضية الأوروبية الرصد والإبلاغ تنظيم وخطط التصاريح / رصد غازات الدفيئة / خطط طن كيلومترا.
العثور على معتمد الاتحاد الأوروبي إتس المدقق في المملكة المتحدة.
لا تتضمن قائمة أوكاس المحققین المعتمدین من قبل ھیئات الاعتماد الوطنیة الأخرى وبموجب قواعد المرحلة الثالثة لا یوجد "تسجیل" أو إجراء قبول للمتحققین من خارج المملکة المتحدة. يجب على جميع المحققين إثبات أنهم إما معتمدين (أو معتمدين) وفقا لنظام الاعتماد والتحقق. ويكون المشغلون مسؤولين عن ضمان اعتماد المحقق الخاص بهم لنطاق العمل ذي الصلة. ويمكن الاطلاع على تفاصيل نطاق اعتماد المحقق على شهادة اعتماد المحقق.
قم بتضمين المعلومات التالية في بريدك الإلكتروني:
اسم رقم تعريف اعتماد منظمة التحقق من هوية الدولة نسخة من شهادة الاعتماد الخاصة بك الاسم الكامل وعنوان البريد الإلكتروني لنقطة الاتصال الرئيسية (سيكون هذا المستخدم مسؤولا عن إدارة المستخدمين الآخرين لهذا المدقق)
وبمجرد أن يوافق مسؤول إتسواب على طلبك للدخول، ستقوم إتسواب بإرسال رسالة بريد إلكتروني تحتوي على تفاصيل تسجيل الدخول لحساب المستخدم الفردي الخاص بك.
لتقديم طلب للحصول على حساب التسجيل المدقق، البريد الإلكتروني etregistryhelp@environment-agency. gov. uk للحصول على حزمة تطبيق.
مزيد من التوجيه.
استخدام بيانات جرد غازات الدفيئة في المملكة المتحدة في مراقبة إتس في الاتحاد الأوروبي والإبلاغ عنها: قائمة العوامل الخاصة بالبلد.
وتسمح لائحة المفوضية الأوروبية بشأن الرصد والإبلاغ باستخدام البيانات المبلغ عنها على الصعيد الوطني بوصفها عوامل افتراضية في ظروف معينة.
معاملات انبعاثات الكربون والقيم الحرارية من جرد غازات الاحتباس الحراري في المملكة المتحدة (إي-ريكاردو) متاحة للإبلاغ عن الانبعاثات السنوية ل إتس الاتحاد الأوروبي:
معاملات الانبعاث والقيم الحرارية لعام 2017.
مس إكسيل سبريادشيت، 81.7KB.
والعوامل الوطنية هي معاملات الانبعاث من المستوى 2 والمستوى 2 أ والقيم الحرارية الصافية لوقود معين تستخدمه صناعات معينة.
وقد استخلصت البيانات إلى حد كبير من جرد غازات الدفيئة في المملكة المتحدة الذي يقدم على أساس سنوي إلى اتفاقية الأمم المتحدة الإطارية بشأن تغير المناخ (أونفسك). يتم تطوير جرد غازات الاحتباس الحراري بشكل مستقل إلى نظام تداول الانبعاثات في الاتحاد الأوروبي. وتعني هذه البيانات البيانات المشار إليها في المادة 31 (1) من لائحة الرصد والإبلاغ.
وال ينبغي استخدام العوامل الواردة في هذه الجداول إال وفقا للمتطلبات الواردة في خطة الرصد المعتمدة في التركيب، والتي تعد جزءا من تصريح غازات الدفيئة.
الجداول المتاحة للسنوات السابقة متوفرة على النحو التالي:
الاتحاد الأوروبي إتس عدم الامتثال.
ويتطلب توجيه الاتحاد الأوروبي بشأن التجارة الإلكترونية أن تضع الدول الأعضاء نظاما للعقوبات يكون فعالا ومتناسبا ورادعا، ولكن طبيعة العقوبات متروكة إلى حد كبير للدول الأعضاء (باستثناء عقوبة عدم تقديم بدلات كافية في بعض الحالات ظروف).
وتحدد لوائح نظام تجارة انبعاثات غازات الاحتباس الحراري لعام 2018 العقوبات المدنية التي يكون الشخص مسؤولا عنها في حالة عدم امتثاله لنظام إتس للاتحاد الأوروبي. وقد أصدر المركز التوجيهات أدناه فيما يتعلق بصناعة النفط والغاز البحرية التي توضح بالتفصيل نهج الإدارة في التنفيذ والجزاءات.
وتنص اللوائح على حق الطعن في قرارات هيئة تنظيم الاتصالات الأوروبية التابعة للاتحاد الأوروبي. وفي إنكلترا وويلز، تنظر محكمة الدرجة الأولى في نداءات موجهة إلى مشغلي المنشآت الثابتة ومشغلي الطائرات، وكذلك المنشآت البحرية.
وتستمع لجنة الاستئناف للتخطيط إلى الاستئناف في أيرلندا الشمالية وتحدده. وفي اسكتلندا، تستمع مديرية التخطيط والنداءات البيئية في الحكومة الاسكتلندية إلى النداءات نيابة عن الوزراء الاسكتلنديين وتحددها.
وتنطبق ترتيبات مختلفة على الطعون التي يقدمها مشغلو الطيران ضد إخطار جزائي يخدم بموجب لوائح خطة تجارة انبعاثات غازات الدفيئة لعام 2018 لعام 2018. وتواصل تطبيق القواعد ذات الصلة بموجب لائحة عام 2018 فيما يتعلق بأي طعن مقدم ضد أي قرار يتخذ أو إشعار يخدم بموجب اللوائح التنظيمية لعام 2018. وتنص هذه الأحكام على أن هيئة الاستئناف هي وزير الدولة أو شخص مستقل يعينه وزير الدولة.
قرارات الاستئناف.
2018 سنة الخطة: تم تحديد ستة دعاوى استئناف بموجب هذا النظام:
الطيران في إتس الاتحاد الأوروبي.
ويتطلب نظام االتحاد األوروبي لتداول االنبعاثات من مشغلي الطائرات رصد انبعاثات ثاني أكسيد الكربون واإلبالغ عنها، وتسليم العدد المعادل من البدالت. ويهدف هذا المخطط إلى أن يكون وسيلة فعالة من حيث التكلفة لمعالجة انبعاثات ثاني أكسيد الكربون الناجمة عن الطيران، مما يمكن صناعة الطيران من النمو على نحو مستدام مع تقديم تخفيضات في الانبعاثات. وينطبق هذا المخطط على جميع الرحلات الجوية بين المطارات في المنطقة الاقتصادية الأوروبية.
التغييرات الرئيسية هي:
(إيا) ل إتس الطيران من 1 يناير 2018 حتى 31 ديسمبر 2018 تأجيل المواعيد النهائية للامتثال لانبعاثات 2018 حتى مارس وأبريل 2018 إعفاء للمشغلين غير التجاريين الذين ينبعثون أقل من 1000 طن من ثاني أكسيد الكربون لكل حتى عام 2020، تبسيط الإجراءات بالنسبة للمشغلين الذين ينبعثون أقل من 000 25 طن من ثاني أكسيد الكربون في السنة، يتم تخفيض عدد العلاوات المجانية الصادرة والبدلات المزاد بالتناسب مع الانخفاض في النطاق.
ونحن نرحب بالآراء من أي منظمة أو فرد، وستكون المشاورات ذات أهمية خاصة لمشغلي الطائرات ومشغلي المطارات والمحققين والمشاركين الآخرين في إتس الاتحاد الأوروبي والمجموعات البيئية.
تنظيم انبعاثات مشغلي الطائرات.
ويدير كل مشغل للطائرات من قبل دولة عضو واحدة. وتصدر المفوضية الأوروبية قائمة سنوية تبين أي من المشغلين تدار من قبل الدولة العضو.
يمكنك معرفة المزيد حول ما يحتاج المشغلين للقيام به للامتثال للمخطط على إتس الاتحاد الأوروبي: مشغلي والأنشطة تتأثر صفحة ويب.
المزاد العلني.
تخصيص مجاني لمشغلي الطائرات.
وقد سنت المفوضية الأوروبية تشريعات في نيسان / أبريل 2017 بشأن تغيير نطاق نظام إيوتس فيما يتعلق بانبعاثات الطيران الدولي (لائحة الاتحاد الأوروبي رقم 421/2017 المعدلة للتوجيه 2003/87 / إيك). ونتيجة للتغيير في نطاق الاتحاد الأوروبي إتس الاتحاد الأوروبي، والمملكة المتحدة ملزمة بإعادة حساب مخصصات مجانية بسبب مشغلي الطائرات المؤهلين. وقد أجريت عملية إعادة الحساب هذه وفقا لتوجيهات اللجنة.
ويشتمل الجدول على جميع المشغلين الذين كانوا في السابق من البدلات المجانية المستحقة، ويشير إلى مخصصاتهم المجانية المجانية في إطار النطاق المخفض. تمت إزالة المشغلين الذين أوقفوا العمليات من هذه القائمة.
ولا يزال يظهر في هذا الجدول المشغلون المعفيون حاليا بموجب الحد الأدنى الجديد غير التجاري (أقل من 000 1 طن من ثاني أكسيد الكربون سنويا محسوبا على أساس النطاق الكامل). غير أنه نظرا لوضعهم المعفي، فإن هؤلاء المشغلين لا يحصلون على بدلات مجانية، ومن ثم فإن حسابهم الخاص بمشغل الطائرات سيعتبر "مستبعدا" في السجل - بمعنى أنه لا يمكن إجراء أي معاملات ولن يتم إيداع أي مخصصات مجانية .
إذا كنت تعتقد أنك لم تعد تستحق أي بدلات كنتيجة للتغييرات أو كنت ترغب في الحصول على مزيد من التوضيح لتخصيص المخصصات المجانية الجديدة، يرجى الاتصال بمكتب المساعدة الجوية التابع لوكالة البيئة ETAviationHelp@environment-agency. gov. uk.
معلومات تاريخية.
ويرجى زيارة صفحة تشريعات االتحاد األوروبي لالتصاالت من أجل الاطلاع على تشريعات المملكة المتحدة ولوائح الاتحاد الأوروبي.
ويرجى زيارة النسخة الوطنية من المحفوظات الخاصة بالطيران في صفحات الويب الخاصة بنظام تداول الانبعاثات في الاتحاد الأوروبي للاطلاع على المعلومات المتعلقة بالنداءات المتعلقة بالطيران / الطيران التي كانت متاحة سابقا على الموقع الإلكتروني للجنة.
مخطط باعث صغير ومستشفى تعطيل.
یسمح مخطط التعویضات الصغیرة والمستشفیات في المملکة المتحدة باستبعاد المنشآت المؤھلة من المرحلة 3 (2018 إلی 2020) من إتس للاتحاد الأوروبي. وقد وافقت المفوضية الأوروبية على هذا المخطط.
وتسمح المادة 27 من توجيه الاتحاد الأوروبي بشأن التجارة الإلكترونية (إيتس) باستبعاد الانبعاثات الصغيرة والمستشفيات من الاتحاد الأوروبي للإنبعاثات، بهدف أساسي هو تقليل الأعباء الإدارية على هذه المنشآت. ويقر ذلك بأن التكاليف الإدارية التي تواجهها بواعث أصغر حجما في إطار إتس للاتحاد الأوروبي مرتفعة بشكل غير متناسب لكل طن من ثاني أكسيد الكربون، بالمقارنة بتكاليف المنشآت الكبيرة التي تنبعث منها. ويتطلب التوجيه أن تكون المنشآت المستبعدة خاضعة لنظام داخلي يقدم إسهاما مساويا في تخفيضات الانبعاثات باعتبارها إتس للاتحاد الأوروبي.
تم تصميم مخطط التعطيل في المملكة المتحدة بالتشاور مع الصناعة، ويهدف إلى تقديم بديل بسيط، وإلغاء التنظيم إلى إتس الاتحاد الأوروبي مع الحفاظ على الحوافز لخفض الانبعاثات. ونقدر أن البرنامج سيوفر وفورات تصل إلى 39 مليون جنيه إسترليني للصناعة على المرحلة الثالثة.
ويتيح مخطط التعطيل تحقيق وفورات من خلال:
فإن الاستعاضة عن شرط بدلات الاستسلام بهدف خفض الانبعاثات تبسيط متطلبات الرصد والإبلاغ والتحقق، بما في ذلك إزالة شرط التحقق من طرف ثالث لا شرط للاحتفاظ بحساب تسجيل نشط أقل قواعد مرهقة لتعديل الهدف بعد increase in installation capacity.
Further details on the scheme are contained in the documents listed below. Please note that these documents will be updated later in 2018. The consultations referred to in the ‘Frequently asked questions’ document are now closed.
Participants in the opt-out scheme.
The application period for the opt-out scheme ran from 23 May to 18 July 2018. Operators of 247 installations were approved to participate in the opt-out scheme by the European Commission as excluded from the EU ETS .
The EU ETS Directive does not provide for further installations to join the opt-out scheme.
Previous information on the development of the scheme including, the application period, policy development and the small emitters workshop held on the 12 June 2018, can be viewed on the National Archives website.
Document information.
Published: 22 January 2018.
Updated: 31 July 2017.
31 July 2017 Emission factors and calorific values for 2017. 27 April 2017 UK National Allocation Table: Phase III National Allocation including changes: April 2017. 21 September 2018 Determination of 4 appeals under the Aviation EU ETS. 28 July 2018 Emission factors and calorific values for 2018 29 April 2018 UK National Allocation Table: Phase III National Allocation including changes: April 2018 29 April 2018 UK National Allocation Table: Phase III National Allocation including changes: April 2018 23 October 2018 Jet Airways civil penalty appeal determination added 20 October 2017 Addition of EU ETS strategy and reform paper 26 August 2017 Addition of free aviation allowance table 16 July 2017 Added information regarding Phase IV. 15 May 2017 Peer review of Ecofys cap-setting report published. 30 April 2017 Updated EU ETS National Allocation table published. 7 August 2018 Details of consultation added under "Complying with the EU ETS". 13 May 2018 The Government response to the consultation on Implementing the Aviation Emissions Trading System ‘stop the clock’ Decision in UK Regulations has been published today. 4 March 2018 Includes new information about a carbon leakage call for evidence. 31 January 2018 Update to include the recent European Commission announcement on NIMS 22 January 2018 First published.
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الخدمات والمعلومات.
الإدارات والسياسات.
روابط الدعم.
مساعدة ملفات تعريف الارتباط الاتصال الشروط والأحكام ريستر o واسانيثاو سيمرايغ بيلت بي ذي غوفرنمنت ديجيتال سيرفيس.
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Document 52008PC0016.
/* COM/2008/0016 final - COD 2008/0013 */
No longer in force.
52008PC0016.
Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community /* COM/2008/0016 final - COD 2008/0013 */
[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |
COM(2008) 16 final.
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL.
amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community.
On 1 January 2005, the European Emission Trading System (EU ETS) started operation. It represents the spearhead and “one of the most important instruments”[1] of EU climate policy due to its ability to achieve absolute emission reductions in an economically efficient manner.
The 1st phase of the EU ETS (2005 to 2007) successfully established free trade of emission allowances across the EU, set up the necessary infrastructure for monitoring, reporting, verification including registries and has so far successfully concluded two compliance cycles. It developed into the world’s largest single carbon market accounting for 67% in terms of volume and 81% in terms of value of the global carbon market[2] and also worked as the driver of the global credit market and in that triggered investments in emission reduction projects today indirectly linking 147 countries to the EU ETS through JI/CDM projects.
However, the environmental outcome of the 1st phase of the EU ETS could have been more significant but was limited due to excessive allocation of allowances in some Member States and some sectors, which must mainly be attributed to reliance on projections and a lack of verified emission data. Once such data became available, it swiftly corrected the market price of allowances demonstrating convincingly that the carbon market is working.
The principles and mechanisms resulting in problems during the 1st trading period recurred in most 2nd phase National Allocation Plans (NAP) of Member States. However, thanks to verified emission data and experience gathered, the Commission could much better ensure that national allocation plans result in real emission reductions. Approved NAP decisions show an absolute emission reduction of 6.5% compared to 2005 verified emissions, thus ensuring that the EU ETS, designed as a cap-and-trade system, will deliver real emission reductions. However, experience of the 1st period and the NAP assessment of the 2nd period gave strong reason to believe that the overall functioning of the EU ETS could be improved in a number of aspects.
Against this background and responding to Article 30 of the EU ETS Directive[3], the Commission, in November 2006, issued a Communication “Building a global carbon market – Report pursuant to Article 30 of Directive 2003/87/EC”[4], where it identified the main subjects to be reviewed with a view to streamlining the EU ETS.
In March 2007, the European Council endorsed an EU objective of a 30% reduction in greenhouse gas emissions (GHG) by 2020 provided that other developed countries would commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. The Council also made a firm independent commitment of at least a 20% reduction of GHG emissions by 2020, irrespective of any international agreement. In the longer term, by 2050, the European Council reaffirmed that developed countries should collectively reduce their emissions by 60% to 80% by 2050 compared to 1990[5].
Against this background and with a view to enhancing the certainty and predictability of the emissions trading system, the Directive should provide for automatic and predictable adjustments upon the conclusion of a future international agreement. They should increase the level of contribution of the EU ETS to achieving the reduction of 30% and should concern the allocation mechanism, the adjustment of the EU-wide cap, the use of credits from JI/CDM and potentially additional types of credits and/or mechanisms foreseen under the agreement.
In its conclusions of 20 February 2007, the Council emphasised the EU commitment of transforming Europe into a highly energy efficient and low greenhouse-gas-emitting economy. It also called on the Commission to “bring forward proposals which create the right incentives for forward-looking, low-carbon investment decisions”[6].
All these elements have been discussed in the framework of the European Climate Change Program (ECCP) Working Group on Emissions Trading, which met four times for eight days between March and June 2007. The outcome of these meetings provided major input to the review of the EU ETS Directive[7]. The provisions of the proposed amendments to the EU ETS Directive are guided by three overall objectives to be achieved:
1. Fully exploiting the potential of the EU ETS to contribute to the EU's overall greenhouse gas reduction commitments in an economically efficient manner.
2. Refining and improving the EU ETS in the light of experience gathered.
3. Contributing to transforming Europe into a low greenhouse-gas-emitting economy and creating the right incentives for forward looking low carbon investment decisions by reinforcing a clear, undistorted and long-term carbon price signal.
Streamlining and increasing the scope of the EU ETS…
Codifying the interpretation of combustion installation set out in the 2nd NAP guidance document of the Commission would end the inconsistent application of the scope of the Directive and would broadly reflect the approach taken by the Commission in the assessment of the National Allocation Plans in the 2nd period. In combination with an explicit definition of "combustion installation", which encompasses all stationary combustion apparatuses, the operation of which would result in the release of greenhouse gases, it would provide the necessary legal and technical clarity for a consistent application of the Directive. An explicit list of activities, also in Annex I of the Directive, should supplement this approach, in order to clarify the coverage of process emissions possibly not clearly addressed by codification of the above interpretation of combustion installation. New sectors and gases, currently not covered by the EU ETS (see below), should also be covered by the activity list.
Expanding the coverage of the EU ETS by inclusion of new sectors and gases would enhance the environmental effectiveness of the system and would introduce new and additional abatement opportunities to the system, thereby offering a higher abatement potential and potentially lower abatement costs[8].
The level of abatement potential or costs may not strictly represent a criterion for including a certain sector in the EU ETS, since there are already sectors included the abatement potential of which might be limited, but which include considerable GHG emission sources. Furthermore, it is important to highlight the need to attach an economic value to the emission of GHG. This has to be seen in the light of the new emission reduction objectives set by the European Council. They will only be achieved, if forward-looking, low-carbon investments are triggered by the necessary economic signals emerging from a clear and undistorted carbon price applicable to as many industrial sectors as possible.
For these reasons, CO2 emissions from petrochemicals, ammonia and aluminium should be included in the EU ETS. This also goes for N2O emissions from the production of nitric, adipic and glyoxalic acid production and PFC emissions from the aluminium sector, all of which can be measured and verified with sufficient accuracy.
Inclusion of these sectors and gases would increase the coverage of the EU ETS by up to roughly estimated 100 MtCO2 or up to 4.6% of Phase II allowances. In combination with streamlining the scope of the EU ETS through a codified interpretation of combustion installation, overall coverage of the EU ETS would roughly increase by up to 140 to 150 MtCO2 or 6.6 to 7.1% compared to Phase II allowances[9].
The emissions trading system should only be extended to emissions which are capable of being monitored, reported and verified with the same level of accuracy as applies under the monitoring, reporting and verification requirements currently applicable under the Directive. This is the case for shipping, which is not included in this proposal but might be included at a later stage following a full fledged dedicated impact assessment. It is not the case for emissions from agriculture or forestry, although the EU ETS considers the combustion of biomass to be emission-neutral. The European Parliament and the Council have endorsed the use of proceeds from auctioning of allowances within the EU ETS to be used for reducing emissions, in particular by avoiding deforestation[10].
In addition, expansion of the scope will be further facilitated by enabling the Commission, in its approval of an application for unilateral inclusion of additional activities and gases not listed in Annex I of the Directive to authorise other Member States to also undertake the inclusion of such additional activities and gases.
… while potentially lowering its overall costs through allowing alternative measures for small emitters…
Since the contribution of small and large emitters to the overall emissions covered by the EU ETS is uneven: the largest 7% of installations represent 60% of total emissions, while the 1 400 smallest installations (approximately 14%) only account for 0.14%. For this reason, the cost-effectiveness of small installations' contributions to emission reductions might be improved. While the currently applicable threshold of 20 MW of rated thermal input for combustion installations will be maintained, it should be combined with an emission threshold of 10 000 tCO2/yr (but excluding emissions from biomass), as long as their rated thermal input does not exceed 25 MW. This means that combustion installations with a rated thermal input of more than 20 MW, but less than 25 MW and an annual emission of less than 10 000 tonnes of carbon dioxide in each of the three years preceding the year of application, can be excluded from the EU ETS, if.
1. as a matter of fairness, and in order to ensure that the internal market will not be distorted, there are measures (such as taxation) in place that will achieve an equivalent contribution of installations excluded from the system to the overall emission reduction objectives;
2. Member States apply to the Commission for excluding installations and continuing such measures and monitoring, and the Commission does not object within a period of six months.
The threshold of 10 000 tonnes of carbon dioxide offers, in relative terms, the maximum gain in terms of reduction of administrative costs for each tonne (potentially) excluded from the system. This would lead to saving administrative costs under the EU ETS in the order of € 4.2 for each tonne excluded with unknown administrative costs to equivalent administrative measures. Around 4 200 installations could be opted out accounting for approximately 0.70% of total ETS emissions.
A change of the aggregation rule, in line with the second guidance document of the Commission, resulting in excluding installations with less than 3 MW rated thermal input from the scope of the aggregation clause may lead to the exclusion of another (roughly estimated) 800 very small installations, currently covered under the system.
… with new opportunities offered by Carbon Capture and Storage …
In view of the long-term potential for emissions reductions from CCS, and pending the entry into force of Directive 2008/xx/EC on the geological storage of carbon dioxide, installations undertaking the capture, transport and geological storage of greenhouse gases should be included in the Community system. While Article 24 offers the appropriate legal framework for unilateral inclusion of such installations pending the entry into force of the said Directive, activities concerning capture, transport and geological storage of greenhouse gas emissions should be explicitly mentioned in Annex I of the Directive, in order to provide clarity.
With a view to providing the necessary incentives for geological storage of emissions, there would be no need to surrender allowances for emissions stored. However, no free allocation should be given for capture, transport or storage of greenhouse gas emissions.
… but without replacing other transport measures…
Although greenhouse gas emissions from road transport and shipping, are still increasing, more detailed analysis including a comprehensive cost-benefit analysis is necessary, in order to allow the Commission to decide on whether emissions trading is the most appropriate means to deal with these issues. Emissions from road transport and shipping are therefore not included in this proposal.
3. MONITORING, REPORTING, VERIFICATION.
Improvements of monitoring and reporting rules…
Experience with monitoring and reporting so far showed some degree of divergence of Member States' practices. In order to improve overall performance of the monitoring and reporting system across the EU, a regulation adopted through comitology should replace the current guidelines.
… in combination with harmonised rules for verification and accreditation …
The current Directive and its Annexes only regulate some fundamental requirements and aspects of the verification process. As a consequence, verification practices in Member States differ and may not necessarily ensure the level playing field required to maintain the overall credibility of verification. A regulation adopted through comitology should provide common requirements for verification, in order to guarantee a certain level of quality of the verification process, while further improvements should be enabled through amendments to Annexes IV and V of the Directive.
This regulation should also enable Community-wide accreditation for verifiers for the benefit of the internal market.
… and updated compliance provisions …
In order to ensure that the penalties for non-compliance remain sufficiently high to ensure that the market functions properly, the excess emissions penalty should be indexed to the annual inflation rate of the Eurozone. This provision would ensure the deterrent effect of the current provision without having to review it frequently.
… increases confidence in and credibility of the EU ETS…
Monitoring, reporting and verification play a fundamental role for the functioning and overall credibility of the EU ETS, inside and outside the EU. Its environmental effectiveness and integrity and thus its overall reputation and acceptance depends to a large extent on a robust, reliable and trustworthy monitoring, reporting and verification system that ensures a sufficient degree of accuracy of the respective level of emissions of each installation covered by the system.
Against this background, potentially higher administrative costs in the short-term accruing from a regulation for the Commission seem to be justified, as administrative costs in the longer term would be much lower. In addition, it would provide greater certainty, transparency and reliability with respect to the actual emission levels and thus enhance the trust of the market in the system. In the longer term, these benefits are expected to largely offset any short-term higher administrative costs and indeed will reduce overall costs for monitoring, reporting and verification for operators and national authorities, once electronic tools play a more important role.
… with a simple and robust registry system.
Allowances must be transferable between persons within the Community without any restriction. For this reason and due to the technical, political and administrative risks related to the current registry system and in the light of the uncertainty concerning the future development of the UN registry system, EU ETS allowances issued from 1 January 2018 onwards should be held in the Community registry. As well as simplifying the system, this is also necessary to ensure that the EU ETS can link to other emissions trading systems in third countries and administrative entities.
4. FURTHER HARMONISATION AND INCREASED PREDICTABILITY.
An EU-wide cap ensures achieving the 20% reduction target and a linear reduction provides long-term predictability …
A system based on national cap-setting does not provide sufficient guarantees that the emission reduction objectives endorsed by the European Council in March 2007 will be achieved. Moreover, such a system is not likely to lead to minimise overall cost of emissions reductions than necessary. Therefore, in order to achieve these objectives, an EU-wide cap should be determined in the Directive.
It also provides a long-term perspective and increased predictability, which is required for long-term investments in efficient abatement. This can be best achieved by an 8-year trading period until 2020 and a linear reduction of the cap that continues the reduction path beyond 2020, thereby giving a clear message to investors.
The level of the EU-wide cap for the EU ETS needs to be cost-effective and consistent with the EU's commitment of an overall reduction in emissions of 20% by 2020. The linear reduction which is consistent with this principle amounts to 1.74% per year, arriving at a reduction of 21% below reported 2005 emissions. This path has been calculated by starting at the mid-point of the 2008-12 period average annual total quantity of allowances issued by Member States pursuant to Commission Decisions on Member States' national allocation plans for the period 2008-12.
… while auctioning is the basic principle for allocation subject to the need to avoid carbon leakage …
Auctioning best ensures efficiency of the ETS, transparency and simplicity of the system and avoids undesirable distributional effects. Auctioning also best complies with the polluter-pays principle and rewards early action to reduce emissions. For these reasons auctioning should be the basic principle for allocation. The efforts to be made by the European economy to reach the greenhouse gas reduction targets set for 2020 will, however, be more significant than those currently required by 2018 and in the absence of comparable constraints for industry in third countries, there may arise a risk of "carbon leakage", i. e. relocation of greenhouse gas emitting activities from the EU to third countries and thereby increasing global emissions.
In this context, taking into account their ability to pass through opportunity costs, full auctioning should be the rule from 2018 onwards for the power sector and carbon capture and storage. In order to encourage a more efficient generation of electricity, electricity generators could however receive free allowances for heat delivered to district heating or industrial installations.
For installations in other sectors, a gradual transition is appropriate, starting with free allocation at a level of 80% of their share in the total quantity of allowances to be issued, decreasing by equal amounts each year, arriving at zero free allocation by 2020.
In the event that other developed countries and other major emitters of greenhouse gases do not participate in an international agreement that will achieve the objective of limiting global temperature increase to 2°C, certain energy-intensive sectors and sub-sectors in the Community subject to international competition could be exposed to the risk of carbon leakage. This could undermine the environmental integrity and benefit of actions by the Community. The European industry should receive a clear commitment that the Community will take appropriate action. The Commission will review the situation by June 2018 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by appropriate proposals. In this context, the Commission will identify by 30 June 2018 which energy intensive sectors or sub-sectors are likely to be subject to carbon leakage. It will base its analysis on the assessment of the inability to pass through the cost of required allowances in product prices without significant loss of market share to installations outside the EU not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to significant risk of carbon leakage could receive up to 100% of allowances free of charge or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at a significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement.
Overall, it is estimated that, at least two thirds of the total quantity of allowances will be auctioned in 2018.
The Directive determines the shares of the total quantity of allowances that Member States will auction. The proposal foresees that 90% of the total quantity of allowances to be auctioned is distributed according to the relative share of 2005 emissions in the EU ETS[11]. For reasons of fairness and solidarity, and taking into account national circumstances, 10% of the total quantity of allowances to be auctioned should be redistributed from Member States with an average level of income per head that is more than 20% above the EU average. Redistribution is higher with low income levels per head and high growth prospects.
Auctioning of allowances should be carried out without distorting competition in the internal market and without distorting the allowances market. The Directive therefore provides a legal basis for a regulation on the design and execution of auctions.
Auctioning will generate significant revenues. In line with the precautionary principle laid down in Article 174(2) of the Treaty establishing the European Community, a certain percentage of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adapting, to develop renewable energies to meet the EU's commitment to using 20% renewable energies by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund, for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle incomes.
In December 2006, the Commission made a legislative proposal to reduce the climate impact attributable to aviation by including carbon dioxide emissions from aviation in the Community system for greenhouse gas emission allowance trading. While the Commission made clear in its impact assessment that the aviation industry was expected to be able to pass on, to a large extent or even in full, the costs of participating in the system to their customers, the Commission did not take a position on the appropriate percentage of allowances to be auctioned beyond 2018, stating instead that, for future periods, the percentage to be auctioned shall take into account the general review of this Directive. This review has now been completed Aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators, which means that from 2018 onwards, 80% of allowances should be allocated for free in 2018, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation.
…any transitional allocation for free, also for new entrants, is to be based on Community-wide rules …
In order to avoid distortions of competition, the transitional free allocation should be based on harmonised Community-wide rules. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass and greenhouse gas capture and storage. Any such rules must avoid perverse incentives to increase emissions.
Installations that have closed shall no longer receive any allowances for free. The proposal foresees the creation of a Community-wide new entrants' reserve. Allocations from this reserve should mirror the allocation rules for existing installations.
5. LINKING WITH EMISSIONS TRADING SYSTEMS IN THIRD COUNTRIES, AND APPROPRIATE MEANS TO INVOLVE DEVELOPING COUNTRIES AND COUNTRIES IN ECONOMIC TRANSITION.
Linking with other emission trading systems to build a global carbon market…
The EU ETS should be able to link to other mandatory emission trading systems capping absolute emissions in third countries or administrative entities by means of arrangements and agreements to provide for the recognition of allowances between the EU ETS and the emission trading system to be linked to the EU ETS.
In line with the conclusions of the European Council of March 2007, the EU is committed to reduce its greenhouse gas emissions by 30% in the event of an international agreement. The terms of such an agreement will affect the combined number of allowances available in the EU ETS linked with another emission trading systems. For this reason, enabling provisions must be foreseen to provide for the necessary adjustments, where needed and appropriate.
… which exists already in terms of project credits, but there is a need for harmonisation…
Project credits allow EU operators to meet obligations under the ETS by investing in projects to reduce emissions outside the EU. This can be an incentive for countries to come within an international agreement and a short term cost-efficient way for companies to meet their obligations.
Under the conditions for phase 2 around 1 400 million tonnes of credits are allowed to enter the EU ETS, or a yearly average of 280 million tonnes. Relative to 2005 emissions the estimated phase 2 cap represents a reduction of approximately 130 million tonnes. If full use of credits is made by operators, few domestic reductions would occur and in an extreme case emissions in the EU ETS could even increase making it more difficult to achieve the EU's overall 2020 reduction targets. Therefore, CDM credits up to the remainder of the level which they were allowed in the 2nd trading period (2008-12) should be allowed in the 3rd trading period. Accordingly, operators should be given certainty about their potential after 2018 to use them by requiring Member States to allow operators to exchange certain CERs issued in respect of emission reductions before 2018 for allowances valid from 2018 onwards. This should also apply to high quality CERs issued in respect of emission reductions from 2018 onwards from projects that have been established before 2018.
In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions by operators within the Community emissions trading system should be harmonised. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased in tandem with the increase in the level of emission reductions to be achieved through the EU emissions trading system (i. e. from 20% rising to 30%). In the absence of such agreement, providing for further use of CERs would undermine this incentive and make it more difficult to achieve the EU's objectives on increasing renewable energy use.
While ERUs cannot exist in respect of emissions reductions from 2018 onwards before the entry into force of a future international agreement on climate change, projects which generated ERUs beforehand could continue to be recognised through bilateral or multilateral agreements with third countries. Once a future international agreement on climate change has been reached, CDM credits shall only be accepted in the EU ETS from third countries that have ratified the international agreement. Provisions should be included to discourage 'free-riding' by companies in States which have not concluded an international agreement, except where those companies are based in third countries or administrative entities which are linked to the EU emissions trading system.
The use of CERs should be consistent with the EU's goal of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to trigger investments in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation in European companies and technological development in third countries. Such agreements may be ratified by more than one country.
Projects that reduce greenhouse gas emissions in the Community should be allowed to issue allowances provided they comply with certain conditions necessary to safeguard the proper functioning of the EU ETS. Such conditions would encompass adoption of harmonised rules for these projects at Community level, exclude double-counting of emission reductions and any impediment of the scope of the Community emissions allowance trading system as well as the undertaking of other policy measures to reduce emissions not covered by the EU ETS. Finally, these projects must not entail a huge administrative burden, but should be based on simple, easily administered rules.
6. ENTRY INTO FORCE.
The requirement to submit national allocation plans will be superseded by this proposal when it enters into force. In the event that this were delayed, Member States are required, under the EU ETS as it stands, to draw up and submit national allocation plans by June 2018 for the period 2018-17. From 2018 onwards, the current Directive allows all allowances to be auctioned. Allocation for free would constitute state aid which must be justified under Article 87 and 88 of the EC Treaty. With a view to enhancing certainty and predictability, at this stage, the Commission considers that national allocation plans would only be acceptable, if the total quantity were to decrease at least in line with this proposal and free allocations proposed do not exceed the amount either set out in this proposal or developed under it.
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL.
amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community (Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 175(1) thereof,
Having regard to the proposal from the Commission[12],
Having regard to the opinion of the European Economic and Social Committee[13],
Having regard to the opinion of the Committee of the Regions[14],
Acting in accordance with the procedure laid down in Article 251 of the Treaty[15],
(1) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC[16] established a system for greenhouse gas emission allowance trading within the Community in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner.
(2) The ultimate objective of the United Nations Framework Convention on Climate Change, which was approved on behalf of the European Community by Council Decision 94/69/EC of 15 December 1993 concerning the conclusion of the United Nations Framework Convention on Climate Change (UNFCCC)[17], is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In order to meet that objective, the overall global annual mean surface temperature increase should not exceed 2°C above pre-industrial levels. The latest Intergovernmental Panel on Climate Change Assessment (IPCC) report[18] shows that, in order to reach that objective, global emissions of greenhouse gases must peak by 2020. This implies the increasing of efforts by the Community and the quick involvement of developed countries and encouraging the participation of developing countries in the emission reduction process.
(3) The European Council[19] has made a firm commitment to reduce the overall greenhouse gas emissions of the Community by at least 20% below 1990 levels by 2020, and by 30% provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries contribute adequately according to their responsibilities and respective capabilities. By 2050, global greenhouse gas emissions should be reduced by at least 50% below their 1990 levels. All sectors of the economy should contribute to achieving these emission reductions.
(4) In order to contribute to achieving those long-term objectives, it is appropriate to set out a predictable path according to which the emissions of installations covered by the Community scheme should be reduced. To achieve cost-effectively the commitment of the Community to at least a 20% reduction in greenhouse gas emissions below 1990 levels, emission allowances allocated in respect of those installations should be 21% below their 2005 emission levels by 2020.
(5) In order to enhance the certainty and predictability of the Community scheme, provisions should be specified to increase the level of contribution of the Community scheme to achieving an overall reduction of more than 20%, in particular in view of the objective of the European Council for a 30% reduction by 2020 that is considered scientifically necessary to avoid dangerous climate change.
(6) Once the Community and third countries conclude an international agreement according to which appropriate global action will be taken beyond 2018, considerable support should be given to credit emission reductions made in those countries. In advance of such an agreement, greater certainty should nonetheless be given on the continued use of credits from outside the Community.
(7) While experience gathered during the first trading period shows the potential of the Community scheme and the finalisation of national allocation plans for the second trading period will deliver significant emission reductions by 2018, the review has confirmed that a more harmonised emission trading system is imperative, in order to better exploit the benefits of emission trading, to avoid distortions in the internal market and to facilitate the linking of emissions trading systems. Furthermore, more predictability should be ensured and the scope of the system should be extended by including new sectors and gases with a view to both reinforcing a carbon price signal necessary to trigger the necessary investments and offering new abatement opportunities, which will lead to lower overall abatement costs and increased efficiency of the system.
(8) The definition of greenhouse gases should be aligned with the definition contained in the UNFCCC, and greater clarity should be given on the setting and updating of global warming potentials for individual greenhouse gases.
(9) The Community scheme should be extended to other installations whose emissions are capable of being monitored, reported and verified with the same level of accuracy as applies under the monitoring, reporting and verification requirements currently applicable.
(10) Where equivalent measures to reduce greenhouse gas emissions, in particular taxation, are in place for small installations whose emissions do not exceed a threshold of 10 000 tonnes of CO2 per year, there should be a procedure for enabling Member States to exclude such small installations from the emissions trading system for so long as those measures are applied. This threshold relatively offers the maximum gain in terms of reduction of administrative costs for each tonne excluded from the system, for reasons of administrative simplicity. As a consequence of the move from five-year allocation periods, and in order to increase certainty and predictability, provisions should be set on the frequency of revision of greenhouse gas emission permits.
(11) The Community-wide quantity of allowances should decrease in a linear manner calculated from the mid-point of the period 2008 to 2018, ensuring that the emissions trading system delivers gradual and predictable reductions of emissions over time. The annual decrease of allowances should be equal to 1.74% of the allowances issued by Member States pursuant to Commission Decisions on Member States' national allocation plans for the period 2008 to 2018, so that the Community scheme contributes cost-effectively to achieving the commitment of the Community to an overall reduction in emissions of at least 20% by 2020.
(12) This contribution is equivalent to a reduction of emissions in 2020 in the Community scheme of 21% below reported 2005 levels, including the effect of the increased scope from the period 2005 to 2007 to the period 2008 to 2018 and the 2005 emission figures for the trading sector used for the assessment of the Bulgarian and Romanian national allocation plan for the period 2008 to 2018, leading to an issue of a maximum of 1 720 million allowances in the year 2020. Exact quantities of emissions will be calculated once Member States have issued allowances pursuant to Commission Decisions on their national allocation plans for the period 2008 to 2018, as the approval of allocations to some installations was contingent upon their emissions having been substantiated and verified. Once the issue of allowances for the period 2008 to 2018 has taken place, the Commission will publish the Community-wide quantity. Adjustments should be made to the Community-wide quantity in relation to installations which are included in the Community scheme during the period 2008 to 2018 or from 2018 onwards.
(13) The additional effort to be made by the European economy requires inter alia that the revised Community scheme operate with the highest possible degree of economic efficiency and on the basis of fully harmonised conditions of allocation within the Community. Auctioning should therefore be the basic principle for allocation, as it is the simplest and generally considered to be the most economically efficient system. This should also eliminate windfall profits and put new entrants and higher than average growing economies on the same competitive footing as existing installations.
(14) All Member States will need to make substantial investments to reduce the carbon intensity of their economies by 2020 and those Member States where income per capita is still significantly below the Community average and whose economies are in the process of catching up with the richer Member States will need to make a significant effort to improve energy efficiency. The objectives of eliminating distortions to intra-Community competition and of ensuring the highest degree of economic efficiency in the transformation of the EU economy towards a low carbon economy make it inappropriate to treat economic sectors differently under the Community scheme in individual Member States. It is therefore necessary to develop other mechanisms to support the efforts of those Member States with relatively lower income per capita and higher growth prospects. 90% of the total quantity of allowances to be auctioned should be distributed amongst Member States according to their relative share of 2005 emissions in the Community scheme. 10% of this quantity should be distributed to the benefit of those Member States for the purpose of solidarity and growth in the Community, to be used to reduce emissions and adapt to the effects of climate change. This distribution of this 10% should take into account levels of income per capita in the year 2005 and the growth prospects of Member States, and be higher for Member States with low income levels per head and high growth prospects. Member States with an average level of income per capita that is more than 20% higher than the average in the Community should contribute to this distribution, except where the direct costs of the overall package estimated in SEC(2008) 85 exceed 0.7% of GDP.
(15) Given the considerable efforts of combating climate change and of adapting to its inevitable effects, it is appropriate that at least 20% of the proceeds from the auctioning of allowances should be used to reduce greenhouse gas emissions, to adapt to the impacts of climate change, to fund research and development for reducing emissions and adaptation, to develop renewable energies to meet the EU’s commitment to using 20% renewable energies by 2020, to meet the commitment of the Community to increase energy efficiency by 20% by 2020, for the capture and geological storage of greenhouse gases, to contribute to the Global Energy Efficiency and Renewable Energy Fund[20], for measures to avoid deforestation and facilitate adaptation in developing countries, and for addressing social aspects such as possible increases in electricity prices in lower and middle income households. This proportion is significantly below the expected net revenues for public authorities from auctioning, taking into account potentially reduced income from corporate taxes. In addition, proceeds from auctioning of allowances should be used to cover administrative expenses of the management of the Community scheme. Provisions should be included on monitoring the use of funds from auctioning for these purposes. Such notification does not release Member States from the obligation laid down in Article 88(3) of the Treaty, to notify certain national measures. The Directive does not prejudice the outcome of any future State aid procedures that may be undertaken in accordance with Articles 87 and 88 of the Treaty.
(16) Consequently, full auctioning should be the rule from 2018 onwards for the power sector, taking into account their ability to pass on the increased cost of CO2, and no free allocation should be given for carbon capture and storage as the incentive for this arises from allowances not being required to be surrendered in respect of emissions which are stored. Electricity generators may receive free allowances for heat produced through high efficiency cogeneration as defined by Directive 2004/8/EC in the event that such heat produced by installations in other sectors were to be given free allocations, in order to avoid distortions of competition.
(17) For other sectors covered by the Community scheme, a transitional system should be foreseen for which free allocation in 2018 would be 80% of the amount that corresponded to the percentage of the overall Community-wide emissions throughout the period 2005 to 2007 that those installations emitted as a proportion of the annual Community-wide total quantity of allowances. Thereafter, the free allocation should decrease each year by equal amounts resulting in no free allocation in 2020.
(18) Transitional free allocation to installations should be provided for through harmonised Community-wide rules ("benchmarks") in order to minimise distortions of competition with the Community. These rules should take account of the most greenhouse gas and energy efficient techniques, substitutes, alternative production processes, use of biomass, renewables and greenhouse gas capture and storage. Any such rules should not give incentives to increase emissions and ensure that an increasing proportion of these allowances is auctioned. Allocations must be fixed prior to the trading period so as to enable the market to function properly. They shall also avoid undue distortions of competition on the markets for electricity and heat supplied to industrial installations. These rules should apply to new entrants carrying out the same activities as existing installations receiving transitional free allocations. To avoid any distortion of competition within the internal market, no free allocation should be made in respect of the production of electricity by new entrants. Allowances which remain in the set-aside for new entrants in 2020 should be auctioned.
(19) The Community will continue to take the lead in the negotiation of an ambitious international agreement that will achieve the objective of limiting global temperature increase to 2°C and is encouraged by the progress made in Bali[21] towards this objective. In the event that other developed countries and other major emitters of greenhouse gases do not participate in this international agreement, this could lead to an increase in greenhouse gas emissions in third countries where industry would not be subject to comparable carbon constraints (“carbon leakage”), and at the same time could put certain energy-intensive sectors and sub-sectors in the Community which are subject to international competition at an economic disadvantage. This could undermine the environmental integrity and benefit of actions by the Community. To address the risk of carbon leakage, the Community will allocate allowances free of charge up to 100% to sectors or sub-sectors meeting the relevant criteria. The definition of these sectors and sub-sectors and the measures required will be subject to re-assessment to ensure that action is taken where necessary and to avoid overcompensation. For those specific sectors or sub-sectors where it can be duly substantiated that the risk of carbon leakage cannot be prevented otherwise, where electricity constitutes a high proportion of production costs and is produced efficiently, the action taken may take into account the electricity consumption in the production process, without changing the total quantity of allowances.
(20) The Commission should therefore review the situation by June 2018 at the latest, consult with all relevant social partners, and, in the light of the outcome of the international negotiations, submit a report accompanied by any appropriate proposals. In this context, the Commission should identify which energy intensive industry sectors or sub-sectors are likely to be subject to carbon leakage not later than 30 June 2018. It should base its analysis on the assessment of the inability to pass on the cost of required allowances in product prices without significant loss of market share to installations outside the Community not taking comparable action to reduce emissions. Energy-intensive industries which are determined to be exposed to a significant risk of carbon leakage could receive a higher amount of free allocation or an effective carbon equalisation system could be introduced with a view to putting installations from the Community which are at significant risk of carbon leakage and those from third countries on a comparable footing. Such a system could apply requirements to importers that would be no less favourable than those applicable to installations within the EU, for example by requiring the surrender of allowances. Any action taken would need to be in conformity with the principles of the UNFCCC, in particular the principle of common but differentiated responsibilities and respective capabilities, taking into account the particular situation of Least Developed Countries. It would also need to be in conformity with the international obligations of the Community including the WTO agreement.
(21) In order to ensure equal conditions of competition within the Community, the use of credits for emission reductions outside the Community to be used by operators within the Community scheme should be harmonised. The Kyoto Protocol to the UNFCCC sets out quantified emission targets for developed countries for the period 2008 to 2018, and provides for the creation of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from Clean Development Mechanism (CDM) and Joint Implementation projects respectively and their use by developed countries to meet part of these targets. While the Kyoto framework does not enable ERUs to be created from 2018 onwards without new quantified emission targets being in place for host countries, CDM credits can potentially continue to be generated. Additional use of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) should be provided for once there is an international agreement on climate change, from countries which have concluded that agreement. In the absence of such agreement, providing for further use of CERs and ERUs would undermine this incentive and make it more difficult to achieve the objectives of the Community on increasing renewable energy use. The use of CERs and ERUs should be consistent with the goal set by the Community of generating 20% of energy from renewable sources by 2020, and promoting energy efficiency, innovation and technological development. Where it is consistent with achieving these goals, the possibility should be foreseen to conclude agreements with third countries to provide incentives for reductions in emissions in these countries which bring about real, additional reductions in greenhouse gas emissions while stimulating innovation by companies established within the Community and technological development in third countries. Such agreements may be ratified by more than one country. Upon the conclusion by the Community of a satisfactory international agreement, access to credits from projects in third countries should be increased simultaneously with the increase in the level of emission reductions to be achieved through the Community scheme.
(22) In order to provide predictability, operators should be given certainty about their potential after 2018 to use CERs and ERUs up to the remainder of the level which they were allowed to use in the period 2008 to 2018, from project types which were accepted by all Member States in the Community scheme during the period 2008 to 2018. As carry-over by Member States of CERs and ERUs held by operators between commitments periods under international agreements (‘banking’ of CERs and ERUs) cannot take place before 2018, and only if Member States choose to allow the banking of those CERs and ERUs within the context of limited rights to bank such credits, this certainty should be given by requiring Member States to allow operators to exchange such CERs and ERUs issued in respect of emission reductions before 2018 for allowances valid from 2018 onwards. However, as Member States should not be obliged to accept CERs and ERUs which it is not certain they will be able to use towards their existing international commitments, this requirement should not extend beyond 31 December 2017. Operators should be given the same certainty concerning such CERs issued from projects that have been established before 2018 in respect of emission reductions from 2018 onwards.
(23) In the event that the conclusion of an international agreement is delayed, the possibility should be foreseen for using credits from high quality projects in the Community trading system through agreements with third countries. Such agreements, which may be bilateral or multilateral, could enable projects to continue to be recognised in the Community scheme that generated ERUs until 2018 but are not longer able to do so under the Kyoto framework.
(24) Least Developed Countries are especially vulnerable to the effects of climate change, and are responsible only for a very low level of greenhouse gas emissions. Therefore, particular priority should be given to addressing the needs of Least Developed Countries when revenues generated from auctioning are used to facilitate developing countries' adaptation to the impacts of climate change. Given that very few CDM projects have been established in those countries, it is appropriate to give certainty on the acceptance of credits from projects started there after 2018, even in the absence of an international agreement. This entitlement should apply to Least Developed Countries until 2020 provided that they have by then either ratified a global agreement on climate change or a bilateral or multilateral agreement with the Community.
(25) Once a future international agreement on climate change has been reached, CDM credits from third countries should only be accepted in the Community scheme once those countries have ratified the international agreement.
(26) The Community and its Member States should only authorise project activities where all project participants have headquarters either in a country that has concluded the international agreement relating to such projects, so as to discourage 'free-riding' by companies in States which have not concluded an international agreement, except where those companies are based in third countries or sub-federal or regional entities which are linked to the EU emissions trading system.
(27) In the light of experience, the provisions of the Community scheme relating to monitoring, reporting and verifying emissions should be improved.
(28) In order to clarify the coverage of all kinds of boilers, burners, turbines, heaters, furnaces, incinerators, kilns, ovens, dryers, engines, flares, and thermal or catalytic afterburning by this Directive, a definition of combustion installation should be added.
(29) In order to ensure that allowances can be transferred between persons within the Community without any restriction, and to ensure that the Community scheme can be linked to emissions trading systems in third countries and sub-federal and regional entities, from January 2018 onwards, all allowances should be held in the Community registry established under Decision No 280/2004/EC of the European Parliament and of the Council of 11 February 2004[22]. This should be without prejudice to the maintenance of national registries for emissions not covered by the Community scheme.
(30) From 2018 onwards, the capture, transport and geological storage of greenhouse gases should be covered by the Community scheme in a harmonised manner.
(31) Arrangements should be provided to enable the mutual recognition of allowances between the Community scheme and other mandatory greenhouse gas emissions trading systems capping absolute emissions established in any third country or sub-federal or regional entity.
(32) Taking into account experience under the Community scheme, it should be possible to issue allowances in respect of projects that reduce greenhouse gas emissions, provided that these projects take place in accordance with harmonised rules adopted at Community level and these projects would not result in the double-counting of emissions reductions or impede the extension of the scope of the Community scheme or the undertaking of other policy measures to reduce emissions not covered by the Community scheme.
(33) [As regards the approach to allocation, aviation should be treated as other industries which receive transitional free allocation rather than as electricity generators. This means that 80% of allowances should be allocated for free in 2018, and thereafter the free allocation to aviation should decrease each year by equal amounts resulting in no free allocation in 2020. The Community and its Member States should continue to seek to reach an agreement on global measures to reduce greenhouse gas emissions from aviation and review the situation of this sector as part of the next review of the Community scheme.]
(34) The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission[23]. In particular power should be conferred on the Commission to adopt measures for the auctioning of allowances, for transitional Community-wide allocation of allowances, for the monitoring, reporting and verification of emissions, for the accreditation of verifiers and for implementing harmonised rules for projects. Since those measures are of general scope and are designed to amend non-essential elements of this Directive and to supplement this Directive by the addition or modification of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.
(35) Directive 2003/87/EC should therefore be amended accordingly.
(36) It is appropriate to provide for an early transposition of those provisions which prepare for the revised operation of the Community scheme from 2018 onwards.
(37) In order to correctly complete the trading-period 2008 to 2018, the provisions of Directive 2003/87/EC, as amended by Directive 2004/101/EC, should continue to apply without affecting the possibility for the Commission to adopt the measures necessary for revised operation of the Community scheme from 2018 onwards.
(38) The application of this Directive is without prejudice to Article 87 and 88 of the EC Treaty.
(39) This Directive respects the fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union.
(40) Since the objectives of this Directive cannot be sufficiently achieved by the Member States acting individually, and can therefore, by reason of its scale and effects be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective,
HAVE ADOPTED THIS DIRECTIVE:
Article 1 Amendments to Directive 2003/87/EC.
Directive 2003/87/EC is amended as follows:
3. The following paragraph is added to Article 1:
"It also provides for the reductions of greenhouse gas emissions to be increased so as to contribute to the levels of reductions that are considered scientifically necessary to avoid dangerous climate change."
4. Article 3 is amended as follows:
(a) point (c) is replaced by the following:
"(c) 'greenhouse gases' means the gases listed in Annex II and other gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation;"
(b) point (h) is replaced by the following:
"(h) 'new entrant' means any installation carrying out one or more of the activities indicated in Annex I, which has obtained a greenhouse gas emission permit subsequent to the submission to the Commission of the list referred to in Article 11(1);"
(c) The following points are added:
"[(t)] 'Combustion installation' means any stationary technical unit in which fuels are oxidised producing heat or mechanical energy or both, and other directly associated activities including waste gas scrubbing are carried out;
[(u)] 'Electricity generator' means an installation that, on or after 1 January 2005, has produced electricity for sale to third parties, and which is only covered by the category 'Supply of power or heat' in Annex I."
5. Article 5(d) is replaced by the following:
"(d) the measures planned to monitor and report emissions in accordance with the Regulation referred to in Article 14."
6. The following subparagraph is added to Article 6(1):
"The competent authority shall, at least every five years, review the greenhouse gas emissions permit and make any amendments as are appropriate."
7. Article 9 is replaced by the following:
"Article 9 Community-wide quantity of allowances.
The Community-wide quantity of allowances issued each year starting in 2018 shall decrease in a linear manner beginning from the mid-point of the period 2008 to 2018. The quantity shall decrease by a linear factor of 1.74% compared to the average annual total quantity of allowances issued by Member States in accordance with the Commission Decisions on their national allocation plans for the period 2008 to 2018.
The Commission shall, by 30 June 2018, publish the absolute quantity of allowances for 2018, based on the total quantities of allowances issued by the Member States in accordance with the Commission Decisions on their national allocation plans for the period 2008 to 2018.
The Commission shall review the linear factor no later than 2025."
8. The following Article 9a is inserted:
"Article 9a Adjustment of the Community-wide quantity of allowances.
1. In respect of installations that were included in the Community scheme during the period 2008 to 2018 pursuant to Article 24(1), the quantity of allowances to be issued from 1 January 2018 shall be adjusted to reflect the average annual quantity of allowances issued in respect of those installations during the period of their inclusion, adjusted by the linear factor referred to in Article 9.
2. In respect of installations which are only included in the Community scheme from 2018 onwards, Member States shall ensure that the operators of such installations may submit to the relevant competent authority independently verified emissions data in order for them to be taken into account for the quantity of allowances to be issued.
Any such data shall be submitted, by 30 April 2018 at the latest, to the relevant competent authority in accordance with the provisions adopted pursuant to Article 14(1).
If the data submitted are duly substantiated, the competent authority shall notify the Commission thereof by 30 June 2018 and the quantity of allowances to be issued, adjusted by the linear factor referred to in Article 9, shall be adjusted accordingly.
3. The Commission shall publish the adjusted quantities referred to in paragraphs 1 and 2."
9. Article 10 is replaced by the following:
"Article 10 Auctioning of allowances.
1. From 2018 onwards, Member States shall auction all allowances which are not allocated free of charge in accordance with Article 10a.
2. The total quantity of allowances to be auctioned by each Member State shall be composed as follows:
(a) 90% of the total quantity of allowances to be auctioned being distributed amongst Member States in shares that are identical to the share of verified emissions under the Community scheme in 2005 of the Member State concerned;
(b) 10% of the total quantity of allowances to be auctioned being distributed amongst certain Member States for the purpose of solidarity and growth within the Community, thereby increasing the amount of allowances that those Member States auction under point (a) by the percentages specified in Annex IIa.
For the purposes of point (a), in respect of Member States which did not participate in the Community scheme in 2005, their share shall be calculated using their verified Community scheme emissions under the Community scheme in 2007.
If necessary, the percentages referred to in point (b) of the first subparagraph shall be adapted in a proportional manner to ensure that the redistribution is 10%.
3. At least 20% of the revenues generated from the auctioning of allowances referred to in paragraph 2, including all revenues from the auctioning referred to in point (b) thereof, should be used for the following:
(a) to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and Renewable Energy Fund, to adapt to the impacts of climate change and to fund research and development for reducing emissions and adapting, including participation in initiatives within the framework of European Strategic Energy Technology Plan;
(b) to develop renewable energies to meet the commitment of the Community to using 20% renewable energies by 2020, and to meet the commitment of the Community to increase energy efficiency by 20% by 2020;
(c) for the capture and geological storage of greenhouse gases, in particular from coal power stations;
(d) for measures to avoid deforestation, in particular in Least Developed Countries;
(e) to facilitate developing countries' adaptation to the impacts of climate change;
(f) to address social aspects in lower and middle income households, for example by increasing their energy efficiency and insulation; و.
(g) to cover administrative expenses of the management of the Community scheme.
4. Member States shall include information on the use of revenues for each of these purposes in their reports submitted under Decision No 280/2004/EC.
5. By 31 December 2018, the Commission shall adopt a Regulation on timing, administration and other aspects of auctioning to ensure that it is conducted in an open, transparent and non-discriminatory manner. Auctions shall be designed to ensure that operators, and in particular any small and medium size enterprises covered by the Community scheme, have full access and any other participants do not undermine the operation of the auction. That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."
10. The following Articles 10a and 10b are inserted:
“Article 10a Transitional Community-wide rules for harmonised free allocation.
1. The Commission shall, by 30 June 2018, adopt Community wide and fully-harmonised implementing measures for allocating the allowances referred to in paragraphs 2 to 6 and 8 in a harmonised manner.
Those measures, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)].
The measures referred to in the first subparagraph shall, to the extent feasible, ensure that allocation takes place in a manner that gives incentives for greenhouse gas and energy efficient techniques and for reductions in emissions, by taking account of the most efficient techniques, substitutes, alternative production processes, use of biomass and greenhouse gas capture and storage, and shall not give incentives to increase emissions. No free allocation shall be made in respect of any electricity production.
The Commission shall, upon the conclusion by the Community of an international agreement on climate change leading to mandatory reductions of greenhouse gas emissions comparable to those of the Community, review those measures to provide that free allocation only takes place where this is fully justified in the light of that agreement.
2. Subject to paragraph 3, no free allocation shall be given to electricity generators, to installations for the capture, pipelines for the transport or to storage sites for greenhouse gas emissions.
3. Free allocation may be given to electricity generators in respect of the production of heat through high efficiency cogeneration as defined by Directive 2004/8/EC for economically justifiable demand to ensure equal treatment with regard to other producers of heat. In each year subsequent to 2018, the total allocation to such installations in respect of the production of that heat shall be adjusted by the linear factor referred to in Article 9.
4. The maximum amount of allowances that is the basis for calculating allocations to installations which carry out activities in 2018 and received a free allocation in the period 2008 to 2018 shall not exceed, as a proportion of the annual Community-wide total quantity, the percentage of the corresponding emissions in the period 2005 to 2007 that those installations emitted. A correction factor shall be applied where necessary.
5. The maximum amount of allowances that is the basis for calculating allocations to installations which are only included in the Community scheme from 2018 onwards shall not exceed, in 2018, the total verified emissions of those installations in 2005 to 2007. In each subsequent year, the total allocation to such installations shall be adjusted by the linear factor referred to in Article 9.
6. Five percent of the Community-wide quantity of allowances determined in accordance with Articles 9 and 9a over the period 2018 to 2020 shall be set aside for new entrants, as the maximum that may be allocated to new entrants in accordance with the rules adopted pursuant to paragraph 1 of this Article.
Allocations shall be adjusted by the linear factor referred to in Article 9.
No free allocation shall be made in respect of any electricity production by new entrants.
7. Subject to Article 10b, the amount of allowances allocated free of charge under paragraphs 3 to 6 of this Article [and paragraph 2 of Article 3c] in 2018 shall be 80% of the quantity determined in accordance with the measures referred to in paragraph 1 and thereafter the free allocation shall decrease each year by equal amounts resulting in no free allocation in 2020.
8. In 2018 and in each subsequent year up to 2020, installations in sectors which are exposed to a significant risk of carbon leakage shall be allocated allowances free of charge up to 100 percent of the quantity determined in accordance with paragraphs 2 to 6.
9. At the latest by 30 June 2018 and every 3 years thereafter the Commission shall determine the sectors referred to in paragraph 8.
That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)].
In the determination referred to in the first subparagraph the Commission shall take into account the extent to which it is possible for the sector or sub-sector concerned to pass on the cost of the required allowances in product prices without significant loss of market share to less carbon efficient installations outside the Community, taking into account the following:
(a) the extent to which auctioning would lead to a substantial increase in production cost;
(b) the extent to which it is possible for individual installations in the sector concerned to reduce emission levels for instance on the basis of the most efficient techniques;
(c) market structure, relevant geographic and product market, the exposure of the sectors to international competition;
(d) the effect of climate change and energy policies implemented, or expected to be implemented outside the EU in the sectors concerned.
For the purposes of evaluating whether the cost increase resulting from the Community scheme can be passed on, estimates of lost sales resulting from the increased carbon price or the impact on the profitability of the installations concerned may inter alia be used.
Article 10b Measures to support certain energy intensive industries in the event of carbon leakage.
Not later than June 2018, the Commission shall, in the light of the outcome of the international negotiations and the extent to which these lead to global greenhouse gas emission reductions, and after consulting with all relevant social partners, submit to the European Parliament and to the Council an analytical report assessing the situation with regard to energy-intensive sectors or sub-sectors that have been determined to be exposed to significant risks of carbon leakage. This shall be accompanied by any appropriate proposals, which may include:
- adjusting the proportion of allowances received free of charge by those sectors or sub-sectors under Article 10a;
- inclusion in the Community scheme of importers of products produced by the sectors or sub-sectors determined in accordance with Article 10a.
Any binding sectoral agreements which lead to global emissions reductions of the magnitude required to effectively address climate change, and which are monitorable, verifiable and subject to mandatory enforcement arrangements shall also be taken into account when considering what measures are appropriate."
11. Articles 11 and 11a are replaced by the following:
"Article 11 National implementation measures.
1. Each Member State shall publish and submit to the Commission, by 30 September 2018, the list of installations covered by this Directive in its territory and any free allocation to each installation in its territory calculated in accordance with the rules referred to in Article 10a(1).
2. By 28 February of each year, the competent authorities shall issue the quantity of allowances that are to be distributed for that year, calculated in accordance with Articles 10 and 10a.
An installation which ceases to operate shall receive no further free allowances.
Article 11a Use of CERs and ERUs from project activities in the Community scheme before the entry into force of a future international agreement on climate change.
1. Until a future international agreement on climate change has entered into force, and in advance of the application of paragraphs 3 and 4 of Article 28, paragraphs 2 to 7 of this Article shall apply.
2. Operators may request the competent authority, to the extent that the levels of CER/ERU use allowed to them by Member States for the period 2008 to 2018 have not been used up, to issue allowances to them valid from 2018 onwards in exchange for CERs and ERUs issued in respect of emission reductions up until 2018 from project types which were accepted by all Member States in the Community scheme during the period 2008 to 2018. Until 31 December 2017, the competent authority shall make such an exchange on request.
3. To the extent that the levels of CER/ERU use allowed to operators by Member States for the period 2008 to 2018 have not been used up, competent authorities shall allow operators to exchange CERs from projects that were established before 2018 issued in respect of emission reductions from 2018 onwards for allowances valid from 2018 onwards.
The first subparagraph shall apply for all project types which were accepted by all Member States in the Community scheme during the period 2008 to 2018.
4. To the extent that the levels of CER/ERU use allowed to operators by Member States for the period 2008 to 2018 have not been used up, competent authorities shall allow operators to exchange CERs issued in respect of emission reductions from 2018 onwards for allowances from new projects started from 2018 onwards in Least Developed Countries.
The first subparagraph shall apply to CERs for all project types which were accepted by all Member States in the Community scheme during the period 2008 to 2018, until those countries have ratified an agreement with the Community or until 2020, whichever is the earlier.
5. To the extent that the levels of CER/ERU use allowed to operators by Member States for the period 2008 to 2018 have not been used up and in the event that the conclusion of an international agreement on climate change is delayed, credits from projects or other emission reducing activities may be used in the Community scheme in accordance with agreements concluded with third countries, specifying levels of use. In accordance with such agreements, operators shall be able to use credits from project activities in those third countries to comply with their obligations under the Community scheme.
6. Any agreements referred to in paragraph 5 shall provide for the use of credits in the Community scheme from renewable energy or energy efficiency technologies which promote technological transfer, sustainable development. Any such agreement may also provide for the use of credits from projects where the baseline used is below the level of free allocation under the measures referred to in Article 10a or below the levels required by Community legislation.
7. Once an international agreement on climate change has been reached, only CERs from third countries which have ratified that agreement shall be accepted in the Community scheme."
12. In Article 11b(1) the following subparagraph is added:
"The Community and its Member States shall only authorise project activities where all project participants have headquarters either in a country that has concluded the international agreement relating to such projects or in a country or sub-federal or regional entity which is linked to the Community scheme pursuant to Article 25."
13. Article 13 is amended as follows:
(a) paragraph 1 is replaced by the following:
"1. Allowances issued from 1 January 2018 onwards shall be valid for emissions during periods of eight years beginning on 1 January 2018."
(b) paragraph 2 is deleted;
(c) In paragraph 3, the first subparagraph is replaced by the following:"Four months after the beginning of each period referred to in paragraph 1, allowances which are no longer valid and have not been surrendered and cancelled in accordance with Article 12(3) shall be cancelled by the competent authority."
14. Article 14 is replaced by the following:
"Article 14 Monitoring and reporting of emissions.
1. The Commission shall adopt a Regulation for the monitoring and reporting of emissions and, where relevant, activity data, from the activities listed in Annex I which shall be based on the principles for monitoring and reporting set out in Annex IV and shall specify the global warming potential of each greenhouse gas in the requirements for monitoring and reporting emissions for that gas.
That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)].
2. The Regulation may take into account the most accurate and up-to-date scientific evidence available, in particular from the IPCC, and may also specify requirements for operators to report on emissions associated with the production of goods produced by energy intensive industries which may be subject to international competition, and for this information to be verified independently.
Those requirements may include reporting on levels of emissions from electricity generation covered by the Community scheme associated with the production of such goods.
3. Member States shall ensure that each operator of an installation reports the emissions from that installation during each calendar year to the competent authority after the end of that year in accordance with the regulation."
15. Article 15 is amended as follows:
(a) the title is replaced by the following:
"Verification and Accreditation"
(b) the following paragraphs are added:
"The Commission shall adopt a Regulation for the verification of emission reports and the accreditation of verifiers specifying conditions for the accreditation, mutual recognition and withdrawal of accreditation for verifiers, and for supervision and peer evaluation as appropriate.
That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."
16. In Article 16, paragraph 4 is replaced by the following:
"4. The excess emissions penalty relating to allowances issued from 1 January 2018 onwards shall increase in accordance with the European Index of Consumer Prices."
17. Article 19 is amended as follows:
(a) paragraph 1 is replaced by the following:
"1. Allowances issued from 1 January 2018 onwards shall be held in the Community registry."
(b) The following paragraph 4 is added:
"4. The Regulation on a standardised and secured system of registries shall contain appropriate modalities for the Community registry to undertake transactions and other operations to implement arrangements referred to in Article 25(1b)."
18. Article 21 is amended as follows:
(a) in paragraph 1, the second sentence is replaced by the following:
"That report shall pay particular attention to the arrangements for the allocation of allowances, the operation of registries, the application of the implementing measures on monitoring and reporting, verification and accreditation and issues relating to compliance with this Directive and on the fiscal treatment of allowances, if any."
(b) paragraph 3 is replaced by the following:
"3. The Commission shall organise an exchange of information between the competent authorities of the Member States concerning developments relating to issues of allocation, the use of ERUs and CERs in the Community scheme, the operation of registries, monitoring, reporting, verification, accreditation, information technology, and compliance with this Directive."
19. Article 22 is replaced by the following:
"Article 22 Amendments to the Annexes.
The Commission may amend the Annexes to this Directive, with the exception of Annex I , in the light of the reports provided for in Article 21 and of the experience of the application of this Directive. Annexes IV and V may be amended in order to improve the monitoring, reporting and verification of emissions.
Those measures, designed to amend non-essential elements of this Directive, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."
20. In Article 24, paragraphs 2 and 3 are replaced by the following:
"2. When the inclusion of additional activities and gases is approved, the Commission may at the same time authorise other Member States to include such additional activities and gases.
3. The Commission may, on its own initiative or on request by a Member State, adopt a Regulation on the monitoring of, and reporting on, emissions concerning activities, installations and greenhouse gases which are not listed as a combination in Annex I, if that monitoring and reporting can be carried out with sufficient accuracy.
That measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."
21. The following Article 24a is inserted:
"Article 24a Harmonised rules for projects that reduce emissions.
1. In addition to the inclusions provided for in Article 24, the Commission may adopt implementing measures for issuing allowances in respect of projects administered by Member States that reduce greenhouse gas emissions outside of the Community scheme.
Those measures, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)].
Any such measures shall not result in the double-counting of emissions reductions and impede the undertaking of other policy measures to reduce emissions not covered by the Community scheme. Provisions shall only be adopted where inclusion is not possible in accordance with Article 24, and the next review of the Community scheme shall consider harmonising the coverage of those emissions across the Community.
2. The Commission may adopt implementing measures that set out the details for crediting Community-level projects referred to in paragraph 1.
Those measures, designed to amend non–essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)]."
22. In Article 25, the following paragraphs 1a and 1b are inserted:
"1a. Agreements may be made to provide for the recognition of allowances between the Community scheme and mandatory greenhouse gas emissions trading systems with absolute emissions caps established in any other country or in sub-federal or regional entities.
1b. Non-binding arrangements may be made with third countries or with sub-federal or regional entities to provide for administrative and technical coordination in relation to allowances in the Community scheme or other greenhouse gas emissions trading systems with absolute emissions caps."
23. Articles 27 and 28 are replaced by the following:
"Article 27 Exclusion of small combustion installations subject to equivalent measures.
1. Member States may exclude, from the Community scheme, combustion installations which have a rated thermal input below 25MW, reported emissions to the competent authority of less than 10 000 tonnes of carbon dioxide equivalent, excluding emissions from biomass, in each of the preceding 3 years, and which are subject to measures that will achieve an equivalent contribution to emission reductions, if the Member State concerned complies with the following conditions:
24. it notifies the Commission of each such installation, specifying the equivalent measures that are in place,
25. it confirms that monitoring arrangements are in place to assess whether any installation emits 10 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year;
26. it confirms that if any installation emits 10 000 tonnes or more of carbon dioxide equivalent, excluding emissions from biomass, in any one calendar year or the equivalent measures are no longer in place, the installation will be re-introduced into the system;
27. it publishes the information referred to in points (a), (b) and (c) for public comment.
2. If, following a period of three months from the date of notification for the public to comment, the Commission does not object within a further period of six months, the notification shall be considered to be granted.
Following the surrender of allowances in respect of the period during which the installation is in the emissions trading system, the installation shall be excluded and the Member State shall issue no further free allowances to the installation pursuant to Article 10a.
Article 28 Adjustments applicable upon the conclusion of a future international agreement on climate change.
1. Upon the conclusion by the Community of an international agreement on climate change leading, by 2020, to mandatory reductions of greenhouse gas emissions exceeding the minimum reduction levels agreed upon by the European Council, paragraphs 2, 3 and 4 shall apply.
2. From the year following the conclusion of the international agreement referred to in paragraph 1, the linear factor shall increase so that the Community quantity of allowances in 2020 is lower than that established pursuant to Article 9, by a quantity of allowances equivalent to the overall reduction of greenhouse gas emissions by the Community below 20% to which the international agreement commits the Community, multiplied by the share of overall greenhouse gas emission reductions in 2020 which the Community scheme is contributing pursuant to Articles 9 and 9a.
3. Operators may use CERs, ERUs or other credits approved in accordance with paragraph 4 from third countries which have concluded the international agreement, up to half of the reduction taking place in accordance with paragraph 2.
4. The Commission may adopt measures to provide for the use of additional project types by operators in the Community scheme to those referred to in paragraphs 2 to 5 of Article 11a or the use by such operators of other mechanisms created under the international agreement, as appropriate.
Those measures, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article [23(3)].”
28. Annex I is amended in accordance with Annex I to this Directive.
29. Annex IIa is added, as set out in Annex II to this Directive .
30. Annex III is deleted.
1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2018 at the latest. They shall forthwith communicate to the Commission the text of those provisions and a correlation table between those provisions and this Directive.
However, they shall bring into force the laws, regulations and administrative provisions necessary to comply with Article 9a(2) of Directive 2003/87/EC as inserted by Article 1(6) of this Directive and with Article 11 of Directive 2003/87/EC as amended by Article 1(9) of this Directive by [31 December 2009] at the latest.
Member States shall apply the provisions referred to in the first subparagraph from 1 January 2018. When Member States adopt the provisions referred to in the first and second subparagraphs, those provisions shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.
2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive. The Commission shall inform the Member States thereof.
Article 3Transitional provision.
The provisions of Directive 2003/87/EC, as amended by Directive 2004/101/EC, shall continue to apply until 31 December 2018.
Article 4Entry into force.
This Directive shall enter into force on the twentieth day following its publication in the Official Journal of the European Union .
This Directive is addressed to the Member States.
Done at Brussels, […]
For the European Parliament For the Council.
The President The President.
Annex I to Directive 2003/87/EC is amended as follows:
31. Point 1 is replaced by the following:
“1. Installations or parts of installations used for research, development and testing of new products and processes and combustion installations exclusively using biomass are not covered by this Directive.”
32. In point 2 the following sentence is added:
“When calculating the total capacity of combustion installations, units with a rated thermal input under 3 MW shall not be taken into account for the purposes of this calculation.”
33. The table is amended as follows:
(a) The first row of categories of activity is replaced by the following:
Supply of power or heat Combustion installations with a rated thermal input exceeding 20 MW (except hazardous or municipal waste installations) Other Energy activities Mineral oil refineries Coke ovens | Carbon dioxide Carbon dioxide Carbon dioxide |
(b) The second row of categories of activity is amended as follows:
(i) in the heading the word " ferrous " is deleted;
(ii) the following paragraphs are added :
Production and processing of ferrous metals (including ferro-alloys) where combustion installations with a rated thermal input exceeding 20 MW are operated, including rolling mills, re-heaters, annealing furnaces, smitheries, foundries, coating and pickling. Production of aluminium (primary, and secondary where combustion installations with a rated thermal input exceeding 20 MW are operated) Production and processing of non-ferrous metals, including production of alloys, refining, foundry casting, etc., where combustion installations with a rated thermal input exceeding 20 MW are operated. | Carbon dioxide Carbon dioxide and perfluorocarbons Carbon dioxide |
(c) the third row of categories of activity is amended as follows:
(i) the first paragraph is replaced by the following:“Installations for the production of cement clinker in rotary kilns with a production capacity exceeding 500 tonnes per day or lime including the calcination of dolomite and magnesite in rotary kilns with a production capacity exceeding 50 tonnes per day or in other furnaces with a production capacity exceeding 50 tonnes per day”;
(ii) in the third paragraph the following terms are deleted:“, and/or with a kiln capacity exceeding 4 m³ and with a setting density per kiln exceeding 300 kg/m³;”
(iii) the following paragraphs are added:
Installations for the manufacture of rock wool or stone wool with a capacity exceeding 20 tonnes per day Installations for the drying or calcination of gypsum or for the production of plaster boards and other gypsum products, where combustion installations with a rated thermal input exceeding 20 MW are operated. | Carbon dioxide Carbon dioxide |
34. The following rows of categories of activity are added:
Chemical industry Production of carbon black involving the carbonisation of organic substances such as oils, tars, cracker and distillation residues, where combustion installations with a rated thermal input exceeding 20 MW are operated Production of nitric acid Production of adipic acid Production of glyoxal and glyoxylic acid Production of ammonia Production of basic organic chemicals by cracking, reforming, partial or full oxidation or by similar processes, with a production capacity exceeding 100 tonnes per day Production of hydrogen (H2) and synthesis gas by reforming or partial oxidation with a production capacity exceeding 25 tonnes per day Production of soda ash (Na2CO3) and sodium bicarbonate (NaHCO3) ………………………………………………………………… Capture, transport and geological storage of greenhouse gas emissions Installations to capture greenhouse gases for the purpose of transport and geological storage in a storage site permitted under Directive xxxx/xx/EC[24] Pipelines for the transport of greenhouse gases for geological storage in a storage site permitted under Directive xxxx/xx/EC Storage sites for the geological storage of greenhouse gases permitted under Directive xxxx/xx/EC | Carbon dioxide Carbon dioxide and nitrous oxide Carbon dioxide and nitrous oxide Carbon dioxide and nitrous oxide Carbon dioxide Carbon dioxide Carbon dioxide Carbon dioxide All greenhouse gases listed in Annex II All greenhouse gases listed in Annex II All greenhouse gases listed in Annex II |
The following is added as Annex IIa to Directive 2003/87/EC:
Increases in the percentage of allowances to be auctioned by Member States pursuant to Article 10(2)(a), for the purpose of Community solidarity and growth in order to reduce emissions and adapt to the effects of climate change.
Member State share |
Czech Republic | 31% |
LEGISLATIVE FINANCIAL STATEMENT.
1. NAME OF THE PROPOSAL:
Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the EU greenhouse gas emission allowance trading system of the Community.
2. ABM/ABB FRAMEWORK.
Policy Area(s) concerned and associated Activity/Activities:
Policy area: 07 Environment.
Activity ABB Code 0703: Implementation of Community environmental policy and legislation.
3.1. Budget lines (operational lines and related technical and administrative assistance lines (ex - BA lines)) including headings:
Article 07 03 07 - LIFE+ (Financial Instrument for the Environment — 2007 to 2018)
3.2. Duration of the action and of the financial impact:
For 2009-2018 the appropriations required will be covered by the resources already foreseen for the LIFE+ programme. As the revised legislation only takes effect as from 2018, and there is no end date for the action, the proposal will continue to have an impact on the EU budget also thereafter, at least for regular monitoring of the functioning of the system. The main element of uncertainty is the timing of an international climate change agreement, which may make adjustments to the system necessary.
3.3. Budgetary characteristics (add rows if necessary):
Budget line | Type of expenditure | New | EFTA contribution | Contributions from applicant countries | Heading in financial perspective |
07 03 07 | Non-comp | Diff | NO | NO | NO | NO 2 |
4. SUMMARY OF RESOURCES.
4.1. Financial resources.
4.1.1. Summary of commitment appropriations (CA) and payment appropriations (PA)
EUR million (to 3 decimal places)
Expenditure type | Section no. | 2009 | 2018 | 2018 | 2018 | 2018 | 2017 and later | Total |
Commitment appropriations (CA) | 8.1. | a | 0.900 | 1.850 | 0.150 | 0.150 | 0.000 | 0.000 | 3.050 |
Payment appropriations (PA) | b | 0.270 | 1.185 | 0.815 | 0.675 | 0.105 | 0.000 | 3.050 |
Administrative expenditure within reference amount[26] |
Technical & administrative assistance (NDA) | 8.2.4. | c | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
TOTAL REFERENCE AMOUNT |
Commitment appropriations | a+c | 0.900 | 1.850 | 0.150 | 0.150 | 0.000 | 0.000 | 3.050 |
Payment appropriations | b+c | 0.270 | 1.185 | 0.815 | 0.675 | 0.105 | 0.000 | 3.050 |
Administrative expenditure not included in reference amount[27] |
Human resources and associated expenditure (NDA) | 8.2.5. | d | 1.170 | 1.813 | 1.287 | 0.819 | 0.819 | 0.819 | 6.727 |
Administrative costs, other than human resources and associated costs, not included in reference amount (NDA) | 8.2.6. | e | 0.250 | 0.287 | 0.341 | 0.395 | 0.277 | 0.331 | 1.881 |
Total indicative financial cost of intervention |
TOTAL CA including cost of human resources | a+c+d+e | 2.320 | 3.950 | 1.778 | 1.364 | 1.096 | 1.150 | 11.658 |
TOTAL PA including cost of human resources | b+c+d+e | 1.690 | 3.285 | 2.443 | 1.889 | 1.201 | 1.150 | 11.658 |
If the proposal involves co-financing by Member States or other bodies (please specify which), an estimate of the level of this co-financing should be indicated in the table below (additional lines may be added if different bodies are foreseen for the provision of the co-financing):
EUR million (to 3 decimal places)
Co-financing body | Year n | n + 1 | n + 2 | n + 3 | n + 4 | n + 5 and later | Total |
…………………… | f | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
TOTAL CA including co-financing | a+c+d+e+f |
4.1.2. Compatibility with financial programming.
X Proposal is compatible with existing financial programming.
( Proposal will entail reprogramming of the relevant heading in the financial perspective.
( Proposal may require application of the provisions of the Interinstitutional Agreement[28] (i. e. flexibility instrument or revision of the financial perspective).
4.1.3. Financial impact on revenue.
X Proposal has no financial implications on revenue.
( Proposal has financial impact – the effect on revenue is as follows:
NB: All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.
EUR million (to one decimal place)
Prior to action [Year n-1] | Situation following action |
Total number of human resources | 10 A*/AD | 15.5 A*/AD | 11 A*/AD | 7 A*/AD | 7 A*/AD | 7 A*/AD |
5. CHARACTERISTICS AND OBJECTIVES.
5.1. Need to be met in the short or long term.
The EU Emission Trading System is one of the most important instruments for the EU's contribution towards achieving the significant emission reductions which are necessary to prevent dangerous climate change.
In the light of the experience with the first trading period and extensive stakeholder consultations, it is clear that the scheme needs to be strengthened and extended to further large industrial emitters, so that it can become a solid building block for a global carbon market and for a future international agreement on climate change. To this end, financial resources are necessary for the development of tasks attributed to the Commission by the Directive, including:
- the development of Regulations setting out detailed implementing rules on monitoring and reporting, verification of emission reports and accreditation of verifiers, and auctioning,
- the development of Community-wide allocation rules,
- the development of rules in relation to projects that reduce greenhouse gas emissions within or outside the Community,
- the potential development of methodologies and provisions to be valid until an international agreement on climate change has been concluded,
- any necessary adjustment of the provisions of the Directive once an international agreement on climate change has been concluded,
- the setting up of arrangements and agreements for the recognition of allowances between the Community system and compatible, mandatory GHG emission trading systems in other parts of the world,
- the procurement of studies or other technical assistance related to the implementation,
- information and capacity-building activities.
The primary beneficiaries of the improved certainty and predictability and the increased harmonisation of the scheme are the operators of installations that are currently covered or are proposed to be covered in the future. Indirectly, also trading intermediaries benefit from the increased transparency and predictability.
5.2. Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy.
Action to reduce greenhouse gas emissions can best be achieved through legislation and coordination at Community level. It appeared from the first phase of the EU ETS from 2005 to 2007 that increased harmonisation, e. g. of the application of the scope of the Directive and of the cap-setting and the allocation rules is needed in order to avoid distortions of competition on the internal market.
Operational expenditure is envisaged within the part of the LIFE+ budget subject to central direct management.
5.3. Objectives, expected results and related indicators of the proposal in the context of the ABM framework.
The European Council held on 8-9 March 2007 endorsed an EU objective of a 20%, and under certain circumstances 30%, reduction in greenhouse gas emissions by 2020 compared to 1990 as its contribution to a global and comprehensive agreement for the period beyond 2018, provided that other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries to contributing adequately according to their responsibilities and respective capabilities.
Furthermore, that European Council confirmed that the European Union Emissions Trading System (EU ETS) is and will remain one of the most important instruments for the EU's contribution towards achieving the significant emission reductions which are necessary to meet the strategic objective of limiting the global average temperature increase to not more than 2°C above pre-industrial levels.
In this context, it is vital that the EU ETS is improved and extended in the light of experience during the first "learning-by-doing" phase from 2005 to 2007, and that it is prepared for linking to compatible cap-and-trade systems in other parts of the world. The objectives of the proposal are set out in the Explanatory Memorandum.
To streamline and extend the scope of the EU ETS | Fewer complaints from industry or MS relating to differences in application of the scope between MS, and about disproportionate administrative costs for the smallest installations. |
To increase the harmonisation and the predictability of the system | No distortion of competition in the internal market due to differences in Member State implementation. Companies having sufficient regulatory certainty to be able to decide on medium - to long-term investments in low-carbon technologies. |
To have robust compliance and enforcement | High confidence in the EU ETS, also internationally. |
To link with appropriate emissions trading systems in third countries and to have appropriate means to involve developing countries and countries in economic transition | Having given input to the development of emissions trading schemes in third countries or administrative entities with a view to enabling linking to the EU ETS without jeopardizing its environmental integrity. |
5.4. Method of implementation (indicative)
X Centralised management.
X directly by the Commission.
( indirectly by delegation to:
( bodies set up by the Communities as referred to in Article 185 of the Financial Regulation.
( national public-sector bodies/bodies with a public-service mission.
( Shared or decentralised management.
( with Member States.
( with third countries.
( Joint management with international organisations (please specify)
6. MONITORING AND EVALUATION.
6.1. Monitoring system.
Member States will have to report on all actions and measures they take to implement the Directive (Article 1(7) and Article 2 of the proposal).
Contracts signed by the Commission for the purpose of the implementation of the Directive must provide for supervision and financial control by the Commission (or any representative authorised by it) and for audits by the Court of Auditors, if necessary on the spot.
6.2.1. Ex-ante evaluation.
See the impact assessment accompanying this proposal. The economic, social, health and environmental impacts of the measures proposed have been assessed. It was partly carried out internally and partly through external consultants during 2007.
6.2.2. Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experience in the past)
The measures proposed and the accompanying impact assessment take into account lessons learned from the operation of the Community system in the period 2005 to 2007.
6.2.3. Terms and frequency of future evaluation.
The progress of the work on implementing this proposal and the appropriateness of the resources allocated will be evaluated annually in connection with the management plan.
7. Anti-fraud measures.
Internal control standards No 14, 15, 16, 18, 19, 20, and 21, and the principles laid down in Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities will be fully applied.
8. DETAILS OF RESOURCES.
8.1. Objectives of the proposal in terms of their financial cost.
Commitment appropriations in EUR million (to 3 decimal places)
2009 | 2018 | 2018 | 2018 | 2018 | 2017+ |
Officials or temporary staff[30] (XX 01 01) | A*/AD | 9 | 14.5 | 10 | 6 | 6 | 6 |
B*, C*/AST | 1 | 1 | 1 | 1 | 1 | 1 |
Staff financed[31] by Article XX 01 02 |
Other staff[32] financed by Article XX 01 04/05 |
TOTAL | 10 | 15.5 | 11 | 7 | 7 | 7 |
8.2.2. Description of tasks deriving from the action.
- Prepare regulations on auctioning; monitoring and reporting; verification and accreditation.
- Develop Community-wide allocation rules and a Community wide electronic registry.
- Analyse the need for a mechanism to apply to certain energy intensive installations until there is an international agreement on climate change.
- Adjust the scheme, as and if appropriate, in the light of an international agreement on climate change.
- Monitor the implementation in the Member States.
- Capacity-building and information activities.
8.2.3. Sources of human resources (statutory)
( Posts currently allocated to the management of the programme to be replaced or extended.
( Posts pre-allocated within the APS/PDB exercise for year n.
X Posts to be requested in the next APS/PDB procedure.
( Posts to be redeployed using existing resources within the managing service (internal redeployment)
( Posts required for year n although not foreseen in the APS/PDB exercise for the year in question.
8.2.4. Other administrative expenditure included in reference amount (XX 01 04/05 – Expenditure on administrative management)
EUR million (to 3 decimal places)
Budget line (number and heading) | 2009 | 2018 | 2018 | 2018 | 2018 | 2017 and later | TOTAL |
Other technical and administrative assistance |
Total technical and administrative assistance |
8.2.5. Financial cost of human resources and associated costs not included in the reference amount.
EUR million (to 3 decimal places)
Type of human resources | 2009 | 2018 | 2018 | 2018 | 2018 | 2017 and later |
Officials and temporary staff (XX 01 01) | 1.170 | 1.813 | 1.287 | 0.819 | 0.819 | 0.819 |
Staff financed by Art XX 01 02 (auxiliary, END, contract staff, etc.) (specify budget line) |
Total cost of human resources and associated costs (NOT in reference amount) | 1.170 | 1.813 | 1.287 | 0.819 | 0.819 | 0.819 |
Calculation – Officials and temporary agents |
The standard salary for 1A*/AD official as referred to in Point 8.2.1 is € 0.117 M |
Calculation – Staff financed under Article XX 01 02 |
8.2.6. Other administrative expenditure not included in reference amount EUR million (to 3 decimal places) |
2009 | 2018 | 2018 | 2018 | 2018 | 2017 and later | TOTAL |
XX 01 02 11 01 – Missions | 0.010 | 0.010 | 0.010 | 0.030 |
XX 01 02 11 02 – Meetings & conferences |
XX 01 02 11 03 – Committees[34] | 0.027 | 0.081 | 0.135 | 0.027 | 0.081 | 0.351 |
XX 01 02 11 04 – Studies & consultations |
XX 01 02 11 05 - Information systems |
2 Total other management expenditure (XX 01 02 11) | 0.000 | 0.037 | 0.091 | 0.145 | 0.027 | 0.081 | 0.381 |
3 Other expenditure of an administrative nature (XX.010301 (Equipment of the Data Centre, Services and operating expenditure of the Data Centre)) | 0.250 | 0.250 | 0.250 | 0.250 | 0.250 | 0.250 | 1.500 |
Total administrative expenditure, other than human resources and associated costs (NOT included in reference amount | 0.250 | 0.287 | 0.341 | 0.395 | 0.277 | 0.331 | 1.881 |
Calculation - Other administrative expenditure not included in reference amount |
Ten missions of Commission staff at a unit cost of € 1 000 are foreseen every year from 2018 to 2018, in order to explain the new legislation and facilitate its implementation in the Member States. Meetings of the Climate Change Committee (unit cost: € 27 000) are foreseen for the adoption of three new Commission Regulations and amendment of one existing Commission Regulation and of Community-wide rules on allocation. Once an international agreement on climate change has been concluded, certain elements of the EU ETS are likely to have to be adjusted through comitology. There may also be arrangements or agreements for linking the EU ETS to schemes in third countries for adoption in comitology. The meetings of the Climate Change Committee for adoption of the Commission Regulations and of Community-wide allocation rules will be needed in the period 2018 to 2018. The timing of other meetings will depend on developments internationally. The € 250 000 per year. The costs included here relate to the hosting of the CITL/Community Registry by the Commission, as well as to the purchase and maintenance of IT and communication tools necessary to make the system fully operational. The CITL, an independent transaction log recording the issue, transfer and cancellation of allowances is a critical IT application for the functioning of the EU Emissions Trading Scheme, which the Commission is obliged to operate in accordance with Article 20 of Directive 87/2003/EC. According to Article 68 of Regulation (EC) No 2216/2004 regulating the registries system, the Commission must ensure that both the CITL and the CR (a separate registry that the Kyoto Protocol requires the EC to operate) is operational 24 hours a day, 7 days a week, and that interruptions to the operations of these systems are kept to a minimum. The costs relating to development and maintenance of the system are covered by budget line 07 03 07 (LIFE +) - cf section 8.1. |
The needs for human and administrative resources shall be within the allocation that can be granted to the managing DG in the framework of the annual allocation procedure in the light of budgetary constraints.
[1] Emissions Trading Scheme – Council Conclusions of 26 June 2007, available fromregister. consilium. europa. eu/pdf/en/07/st11/st11429.en07.pdf.
[2] The World Bank, State and Trends of the Carbon Market, May 2007.
[3] Directive 2003/87/EC.
[4] COM(2006) 676, 13.11.2006.
[6] EU objectives for the further development of the international climate regime beyond 2018, Council Conclusions of 20 February 2007, available from:register. consilium. europa. eu/pdf/en/07/st06/st06621.en07.pdf.
[7] The reports reflecting the issues discussed and the outcome of the discussions are available from: ec. europa. eu/environment/climat/emission/review_en. htm.
[8] It has been suggested that compliance costs could potentially be reduced by up to 30-40% through the inclusion of new sectors and gases provided, however, that certain conditions including accurate monitoring, reporting and verification issues are met. See Final Report of the 1st meeting of the ECCP Working Group on Emissions Trading on the Review of the EU ETS on the Scope of the Directive, ec. europa. eu/environment/climat/emission/review_en. htm.
[9] These figures are estimations, which can be refined further.
[10] First reading opinion of the European Parliament and political agreement of the Council, on the Commission proposal to include aviation in the EU ETS.
[11] When complete emission figures are available for 2006, the Commission would be willing to consider using the average emissions in 2005 and 2006 in the EU ETS as the basis for this distribution.
[16] OJ L 275, 25.10.2003, p. 32. Directive as amended by Directive 2004/101/EC ( OJ L 338, 13.11.2004, p. 18).
[17] OJ L 33, 7.2.1994, p. 11.
[18] Intergovernmental Panel on Climate Change 4th Assessment report, adopted on 17 November 2007 in Valencia, Spain, and available at ipcc. ch.
[19] Conclusions of the meeting of the European Council of 8-9 March 2007 in Brussels.
[20] COM(2006) 583, 6.10.2006.
[21] 13th Conference of the Parties to the UNFCCC, and 3rd Meeting of the Parties to the Kyoto Protocol, held in Bali, Indonesia from 3-14 December 2007.
[22] OJ L 49, 19.2.2004, p. 1.
[23] OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).
[24] Directive xxxx/xx/EC on the geological storage of carbon dioxide.
[25] Expenditure that does not fall under C8TUdef„…†‡N l °hapter xx 01 of the Title xx concerned.
[26] Expenditure within Article xx 01 04 of Title xx.
[27] Expenditure within Chapter xx 01 other than Articles xx 01 04 or xx 01 05.
[28] See points 19 and 24 of the Interinstitutional Agreement.
[29] Additional columns should be added if necessary, i. e. if the duration of the action exceeds 6 years.
[30] Cost of which is NOT covered by the reference amount.
[31] Cost of which is NOT covered by the reference amount.
[32] Cost of which is included in the reference amount.
[33] Refer to the specific legislative financial statement for the Executive Agency(ies) concerned.
[34] Specify the type of committee and the group to which it belongs.
Emissions cap and allowances.
The overall volume of greenhouse gases that can be emitted by the power plants, factories and other fixed installations covered by the EU emissions trading system (EU ETS) is limited by a 'cap' on the number of emission allowances. A separate cap applies to the aviation sector. Within these Europe-wide caps, companies receive or buy emission allowances which they can trade as needed.
Each allowance gives the holder the right to emit.
one tonne of carbon dioxide (CO 2 ), the main greenhouse gas, or the equivalent amount of two more powerful greenhouse gases, nitrous oxide (N 2 O) and perfluorocarbons (PFCs).
Some allowances are allocated or auctioned specifically to aviation operators. Airlines can use any allowances for compliance purposes, but fixed installations cannot use aviation allowances.
Cap for fixed installations decreases each year.
The 2018 cap for emissions from fixed installations was set at 2,084,301,856 allowances. During phase 3 of the EU ETS (2018-2020), this cap decreases each year by a linear reduction factor of 1.74% of the average total quantity of allowances issued annually in 2008-2018. This amounts to a reduction of 38,264,246 allowances each year.
The linear reduction factor determines the pace of emission reductions in the EU ETS. It is a feature without an end date and as such it gives investors certainty about the return on investment in emission reductions.
Thanks to the decreasing cap, the number of allowances that can be used by fixed installations to cover emissions will be 21% lower in 2020 than in 2005 .
To achieve the target of cutting EU emissions by 40% by 2030 compared to 1990, agreed by EU leaders as part of the 2030 climate and energy framework, the cap will need to be lowered by 2.2% per year from 2021 .
This would reduce emissions from fixed installations to around 43% below 2005 levels by 2030 . By 2050, emissions would be reduced by around 90% compared to 2005.
Aviation cap set at 210 million allowances for 2018-2020.
The aviation sector cap remains the same in each year of the 2018-2020 trading period.
The cap has been provisionally set at 210,349,264 aviation allowances per year, which is 5% below the average annual level of aviation emissions in the 2004-2006 base period.
The cap will be adjusted to include additional aviation activities arising from Croatia's full integration into the aviation part of the EU ETS on 1 January 2017.
Useful documents.
افتح جميع الأسئلة.
Emissions trading: Questions and Answers concerning the second Commission Decision on the EU ETS cap for 2018 (October 2018)
What is the EU ETS cap and why are two steps needed to set it?
The EU ETS cap is the total amount of emission allowances to be issued for a given year under the EU Emissions Trading System (EU ETS). Since each allowance represents the right to emit one tonne of CO 2 - or an amount of another greenhouse gas giving the same contribution to global warming as one tonne of CO 2 - the total number of allowances, i. e. the “cap”, determines the maximum amount of emissions possible under the EU ETS.
In July 2018, the Commission adopted a decision that determined the cap for 2018 based on the current scope of the EU ETS, ie the installations covered in the 2008-2018 period. The second decision, adopted today, takes into account the extended scope of the EU ETS as from 2018.
Which new sectors and gases are covered under the extended scope?
The EU ETS covers installations performing specific activities. Since its launch in 2005 the system has covered, above certain capacity thresholds, power stations and other combustion plants, oil refineries, coke ovens, iron and steel plants and installations producing cement, glass, lime, bricks, ceramics, pulp, paper and board. As for greenhouse gases, it currently covers only carbon dioxide emissions, with the exception of the Netherlands and Austria, which have opted to include emissions from nitrous oxide ( N2O) emissions from some specific installations.
As from 2018, the scope of the ETS will be extended to include other sectors and greenhouse gases. Inter alia, more CO 2 emissions from installations producing bulk organic chemicals, hydrogen, ammonia and aluminium will be included, as will N2O emissions from the production of nitric, adipic and glyocalic acid production and perfluorocarbons from the aluminium sector. Installations performing activities which result in these emissions will be included in the EU ETS as from 2018.
What is the cap for 2018 and how has it been determined?
The cap for the year 2018 has been determined at 2,084,301,856 allowances..
This figure is based on the national allocation plans of Member States for the period from 2008 to 2018 but also takes into account the extended scope of the EU ETS as from 2018 as well as installations 'opted in' to the system by Member States from 2008. It is composed of the following elements:
The Union-wide quantity of allowances which have been issued by Member States in accordance with the Commission Decisions on the National Allocation Plans of Member States for the period from 2008 to 2018. This amounts to 1,976,784,044 in 2018. The average annual quantity of allowances which have been issued by Member States to installations that Member States have 'opted in' to the EU ETS. This amounts to 2,678,155. The quantity of allowances that takes into account the effect of the extended scope of the EU ETS, i. e. installations which will be included as from 2018. This concerns installations emitting the following greenhouse gases: CO 2 emissions from petrochemicals, ammonia and aluminum, N2O emissions from the production of nitric, adipic and glyocalic acid production and perfluorocarbons from the aluminum sector.
From this quantity, the quantity of allowances that represent the effect of installations opted out from the EU ETS would need to be deducted. The corresponding amount deducted was 4,751,898.
Since the cap for 2018 is calculated from the midpoint of the period 2008 to 2018, i. e. 2018, the linear reduction factor of 1.74% (in absolute figures: 38,264,246 allowances) had to be applied three times (in 2018, 2018, 2018), in order to arrive at the total absolute Union-wide quantity of allowances (cap) for 2018, i. e. 2,084,301,856 allowances.
How have the various figures been established at the 2018 level?
The figure representing the quantity of allowances to be issued in accordance with the National Allocation Plans has been established applying the same methodology as used in the Commission's July decision [2] . Basically, it means that the total quantity actually available in the period from 2008 to 2018 has been added up and divided by five. However, as set out in this Decision, additional information has been taken into account, mainly related to new entrants and closed installations. As a consequence, the corresponding figures are now slightly higher than those indicated in the July decision.
The figure representing the effect of the opt-ins has been established in a similar manner as the figure above, i. e. the relevant annual average for 2018 has been calculated by adding up the total amount of allowances opted in for the period from 2008 to 2018 and dividing it by the relevant number of years.
In order to determine the quantity of allowances by which the cap has to be adjusted in order to reflect the extended scope of the EU ETS as from 2018, Member States had to ensure that operators of installations carrying out activities that will be included in the EU ETS only from 2018 onwards submitted duly substantiated and independently verified emissions data..
Member States had to notify duly substantiated data to the Commission by 30 June 2018. The data notified to the Commission cover different years of verified emissions and are therefore not easily comparable. The Commission had to establish an approach with a view to providing a level playing field for all installations included in the EU ETS as from 2018. To this end and for the purpose of establishing the Union-wide quantity of allowances for 2018, the Commission assumed that installations to be included as of 2018 had undertaken the same level of emission reduction efforts as those installations already included before 2018. For this reason, the linear reduction factor of 1.74% was applied to the annual average figure from the midpoint of the period covered by the verified emission data notified by each Member State. The outcome would represent the level of emissions in 2018, had the installations concerned already been included in the EU ETS.
How have the emission data for the new sectors and gases been collected?
Member States have collected the necessary data from installations performing activities which will be included in the EU ETS as from 2018. These data had to be independently verified before the operators of the relevant installations submitted them to the competent authorities of their respective Member State (for which the deadline was 30 April 2018). Where Member States found these data duly substantiated, they could notify them to the Commission by 30 June 2018. On the basis of these notifications, the Commission took into account the extended scope of the EU ETS as from 2018.
Is the 2018 cap now final?
In practice and to a large extent yes. However, marginal fine-tuning is likely to be needed over time, for the following potential reasons:
Before the end of 2018 more new entrants may enter the market requesting allowances from certain Member States 'new entrants' reserves which could not be taken into account in the calculation of the cap thus far. These reserves have not been taken into account either because the Member State has decided not to sell or auction allowances that have not been distributed to new entrants by the end of 2018, or because it has not yet decided whether or not to sell or auction such allowances. Only the new entrants' reserves of Member States which have decided to sell or auction such allowances have been taken into account so far. Emission-reduction projects planned under the Kyoto Protocol's Joint Implementation (JI) mechanism (or in some cases under the Clean Development Mechanism) may not materialise and thus may not yield credits that can be used to offset emissions in the EU ETS. For this reason, allowances may be allocated from the so-called "JI set aside"; Member States may still 'opt in' to the EU ETS installations and activities not covered by the scope of the Directive; Member States may exclude in the 3rd trading period some specific small installations if equivalent measures are in place. As any corresponding measures will not be notified to the Commission before the end of September 2018, they could not be taken into account in this Decision.
For these reasons, final figures for the 2018 cap may thus not be available before 2018. However, in order to keep the public informed, the Commission will update the figures in 2018 or later. These updates should lead only to marginal changes in the overall quantity of allowances available from 2018 onwards.
What will happen to the cap after 2018?
The cap will decrease each year by 1.74% of the average annual total quantity of allowances issued by the Member States in 2008-2018. In absolute terms this means the number of allowances will be reduced annually by 37,435,387. This annual reduction will continue beyond 2020 but may be subject to revision not later than 2025.
What happens if the EU increases its greenhouse gas reduction target for 2020 from 20% to 30%?
If the EU decided to move to a 30% reduction target the cap would need to be revised. Today's decision reflects the 20% reduction target from 1990 levels as enshrined in current legislation. This translates into a 21% cut in emissions from installations in the EU ETS by 2020 compared with 2005 levels.
Is aviation included in the decision?
Aviation is not included in this decision. The cap to be allocated to aircraft operators will be determined by a separate decision of the Commission, as requested in the legislation [3] which will bring aviation into the EU ETS as from 2018.
The EU Emissions Trading System (EU ETS)
The EU Emissions Trading System explained.
The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one.
operates in 31 countries (all 28 EU countries plus Iceland, Liechtenstein and Norway) limits emissions from more than 11,000 heavy energy-using installations (power stations & industrial plants) and airlines operating between these countries covers around 45% of the EU's greenhouse gas emissions.
For a detailed overview, see:
A 'cap and trade' system.
The EU ETS works on the 'cap and trade' principle.
A cap is set on the total amount of certain greenhouse gases that can be emitted by installations covered by the system. The cap is reduced over time so that total emissions fall .
Within the cap, companies receive or buy emission allowances which they can trade with one another as needed. They can also buy limited amounts of international credits from emission-saving projects around the world. The limit on the total number of allowances available ensures that they have a value.
After each year a company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a company reduces its emissions, it can keep the spare allowances to cover its future needs or else sell them to another company that is short of allowances.
Trading brings flexibility that ensures emissions are cut where it costs least to do so . A robust carbon price also promotes investment in clean, low-carbon technologies .
Key features of phase 3 (2018-2020)
The EU ETS is now in its third phase – significantly different from phases 1 and 2.
The main changes are:
A single, EU-wide cap on emissions applies in place of the previous system of national caps Auctioning is the default method for allocating allowances (instead of free allocation), and harmonised allocation rules apply to the allowances still given away for free More sectors and gases included 300 million allowances set aside in the New Entrants Reserve to fund the deployment of innovative renewable energy technologies and carbon capture and storage through the NER 300 programme.
Sectors and gases covered.
The system covers the following sectors and gases with the focus on emissions that can be measured, reported and verified with a high level of accuracy:
carbon dioxide (CO 2 ) from power and heat generation energy-intensive industry sectors including oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals commercial aviation nitrous oxide (N 2 O) from production of nitric, adipic and glyoxylic acids and glyoxal perfluorocarbons (PFCs) from aluminium production.
Participation in the EU ETS is mandatory for companies in these sectors , but.
in some sectors only plants above a certain size are included certain small installations can be excluded if governments put in place fiscal or other measures that will cut their emissions by an equivalent amount in the aviation sector, until 2018 the EU ETS applies only to flights between airports located in the European Economic Area (EEA).
Delivering emissions reductions.
The EU ETS has proved that putting a price on carbon and trading in it can work. Emissions from installations in the scheme are falling as intended – by around 5% compared to the beginning of phase 3 (2018) (see 2018 figures).
In 2020 , emissions from sectors covered by the system will be 21% lower than in 2005 .
Developing the carbon market.
Set up in 2005, the EU ETS is the world's first and biggest international emissions trading system, accounting for over three-quarters of international carbon trading.
The EU ETS is also inspiring the development of emissions trading in other countries and regions. The EU aims to link the EU ETS with other compatible systems.
Main EU ETS legislation.
30/04/2017 - Consolidated version of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 23/04/2009 - Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community 19/11/2008 - Directive 2008/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community 27/10/2004 - Directive 2004/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol's project mechanisms 13/10/2003 - Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.
Carbon market reports.
23/11/2017 – COM(2017) 693 – Report on the functioning of the European carbon market 01/02/2017 - COM(2017) 48 - Report on the functioning of the European carbon market 18/11/2018 - COM(2018) 576 - Report on the functioning of the European carbon market 14/11/2018 - COM(2018) 652 - The state of the European carbon market in 2018.
Revision of the EU ETS for phase 3.
04/02/2018 - European Council conclusions of 4 February 2018 (see conclusions 23 and 24) 18/03/2018 - Guidance on interpretation of Annex I of the EU ETS Directive (excl. aviation activities) 18/03/2018 - Guidance paper to identify electricity generators 06/04/2009 - Council press release on the adoption of the climate and energy package 12/12/2008 - Presidency conclusions of the European Council (11 and 12 December 2008) 12/12/2008 - European Council Statement on the use of auction revenues 23/01/2008 - Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community 23/01/2008 - Commission staff working document - Accompanying document to the Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the EU greenhouse gas emission allowance trading system - Impact assessment.
التنفيذ.
04/07/2018 - Amended Draft Regulation on determining international credit entitlements 05/06/2018 - Draft regulation on determining international credit entitlements 05/05/2018 Commission Regulation (EU) No 389/2018 of 2 May 2018 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2018 and No 1193/2018 Text with EEA relevance 18/11/2018 - Commission Regulation establishing a Union Registry for the trading period commencing on 1 January 2018, and subsequent trading periods, of the Union emissions trading scheme pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision 280/2004/EC of the European Parliament and of the Council and amending Regulations (EC) No 2216/2004 and (EU) No 920/2018 - not yet published in the Official Journal 07/10/2018 - Commission Regulation (EU) No 920/2018 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council - version not including changes brought by Regulation of 18 November 2018 08/10/2008 - Commission Regulation (EC) No 994/2008 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council - version applicable until 31 December 2018 26/10/2007 - EEA Joint Committee Decision No 146/2007 linking the EU ETS with Norway, Iceland and Liechtenstein 13/11/2006 - Commission Decision 2006/780/EC on avoiding DOUBLE COUNTING of greenhouse gas emission reductions under the Community emissions trading scheme for project activities under the Kyoto Protocol pursuant to Directive 2003/87/EC of the European Parliament and of the Council (notified under document number C(2006) 5362) 21/12/2004 - Consolidated version of Commission Regulation (EC) No 2216/2004 for a standardised and secured system of registries amended by Commission Regulation (EC) No 916/2007 of 31 July 2007, Commission Regulation (EC) No 994/2008 of 8 October 2008 and Commission Regulation (EU) No 920/2018 of 7 October 2018 - version not including changes brought by Regulation of 18 November 2018.
Application of VAT.
Legislative History of Directive 2003/87/EC.
Work prior to the Commission proposal.
08/02/2000 - COM(2000) 87 - Green Paper on greenhouse gas emissions trading within the European Union Mandate and results of ECCP Working Group 1 : Flexible mechanisms 04/09/2001 - Chairman's Summary Record of Stakeholder consultation meeting (with Industry and Environmental NGOs) 19/05/1999 - COM(1999) 230 - Preparing for Implementation of the Kyoto Protocol 03/06/1998 - COM(1998) 353 - Climate Change - Towards an EU Post-Kyoto Strategy Scope of the EU ETS: 07/2007 - Small Installations within the EU Emissions Trading System 10/2006 - Inclusion of additional activities and gases into the EU Emissions Trading System Further harmonisation and increased predictability: 12/2006 - The approach to new entrants and closures 10/2006 - Auctioning of CO2 emission allowances in the EU ETS 10/2006 - Harmonisation of allocation methodologies 12/2006 - Report on international competitiveness ECCP working group on emissions trading on the review of the EU ETS 15/06/2007 - Final report of the 4th meeting on Linking with Emission Trading Systems in Third Countries 22/05/2007 - Final report of the 3rd meeting on Further Harmonisation and Increased Predictability 26/04/2007 - Final Report of the 2nd meeting on Robust Compliance and Enforcement 09/03/2007 - Final Report of the 1st meeting on The Scope of the Directive.
Commission proposal of October 2001.
22/01/2002 - Non-paper on synergies between the EC emissions trading proposal (COM(2001)581) and the IPPC Directive 23/10/2001 - COM(2001) 581 - Proposal for a framework Directive for greenhouse gas emissions trading within the European Community.
Commission's reaction to reading of the proposal in Council and Parliament (including Council's common position)
18/07/2003 - COM(2003) 463 - Opinion of the Commission on the European Parliament's amendments to the Council's common position regarding the proposal for a Directive of the European Parliament and of the Council 20/06/2003 - COM(2003) 364 - Commission Communication to the European Parliament concerning the Council's Common Position on the adoption of a Directive establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 18/03/2003 - Common Position (EC) No 28/2003 - Council's Common Position on the adoption of a Directive establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 27/11/2002 - COM(2002) 680 - Amended proposal for a directive of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC Faq.
افتح جميع الأسئلة.
Questions and Answers on the revised EU Emissions Trading System (December 2008)
What is the aim of emissions trading?
The aim of the EU Emissions Trading System (EU ETS) is to help EU Member States achieve their commitments to limit or reduce greenhouse gas emissions in a cost-effective way. Allowing participating companies to buy or sell emission allowances means that emission cuts can be achieved at least cost.
The EU ETS is the cornerstone of the EU's strategy for fighting climate change. It is the first international trading system for CO 2 emissions in the world and has been in operation since 2005. As of I January 2008 it applies not only to the 27 EU Member States, but also to the other three members of the European Economic Area – Norway, Iceland and Liechtenstein. It currently covers over 10,000 installations in the energy and industrial sectors which are collectively responsible for close to half of the EU's emissions of CO 2 and 40% of its total greenhouse gas emissions. An amendment to the EU ETS Directive agreed in July 2008 will bring the aviation sector into the system from 2018.
كيف يعمل تداول الانبعاثات؟
The EU ETS is a 'cap and trade' system, that is to say it caps the overall level of emissions allowed but, within that limit, allows participants in the system to buy and sell allowances as they require. These allowances are the common trading 'currency' at the heart of the system. One allowance gives the holder the right to emit one tonne of CO 2 or the equivalent amount of another greenhouse gas. The cap on the total number of allowances creates scarcity in the market.
In the first and second trading period under the scheme, Member States had to draw up national allocation plans (NAPs) which determine their total level of ETS emissions and how many emission allowances each installation in their country receives. At the end of each year installations must surrender allowances equivalent to their emissions. ويمكن للشركات التي تبقي انبعاثاتها دون مستوى بدلاتها أن تبيع بدلاتها الزائدة. Those facing difficulty in keeping their emissions in line with their allowances have a choice between taking measures to reduce their own emissions – such as investing in more efficient technology or using less carbon-intensive energy sources – or buying the extra allowances they need on the market, or a combination of the two. Such choices are likely to be determined by relative costs. In this way, emissions are reduced wherever it is most cost-effective to do so.
How long has the EU ETS been operating?
The EU ETS was launched on 1 January 2005. The first trading period ran for three years to the end of 2007 and was a 'learning by doing' phase to prepare for the crucial second trading period. The second trading period began on 1 January 2008 and runs for five years until the end of 2018. The importance of the second trading period stems from the fact that it coincides with the first commitment period of the Kyoto Protocol, during which the EU and other industrialised countries must meet their targets to limit or reduce greenhouse gas emissions. For the second trading period EU ETS emissions have been capped at around 6.5% below 2005 levels to help ensure that the EU as a whole, and Member States individually, deliver on their Kyoto commitments.
What are the main lessons learned from experience so far?
The EU ETS has put a price on carbon and proved that trading in greenhouse gas emissions works. The first trading period successfully established the free trading of emission allowances across the EU, put in place the necessary infrastructure and developed a dynamic carbon market. The environmental benefit of the first phase may be limited due to excessive allocation of allowances in some Member States and some sectors, due mainly to a reliance on emission projections before verified emissions data became available under the EU ETS. When the publication of verified emissions data for 2005 highlighted this “over-allocation”, the market reacted as would be expected by lowering the market price of allowances. The availability of verified emissions data has allowed the Commission to ensure that the cap on national allocations under the second phase is set at a level that results in real emission reductions.
Besides underlining the need for verified data, experience so far has shown that greater harmonisation within the EU ETS is imperative to ensure that the EU achieves its emissions reductions objectives at least cost and with minimal competitive distortions. The need for more harmonisation is clearest with respect to how the cap on overall emission allowances is set.
The first two trading periods also show that widely differing national methods for allocating allowances to installations threaten fair competition in the internal market. Furthermore, greater harmonisation, clarification and refinement are needed with respect to the scope of the system, the access to credits from emission-reduction projects outside the EU, the conditions for linking the EU ETS to emissions trading systems elsewhere and the monitoring, verification and reporting requirements.
What are the main changes to the EU ETS and as of when will they apply?
The agreed design changes will apply as of the third trading period, i. e. January 2018. While preparatory work will be initiated immediately, the applicable rules will not change until January 2018 to ensure that regulatory stability is maintained.
The EU ETS in the third period will be a more efficient, more harmonised and fairer system.
Increased efficiency is achieved by means of a longer trading period (8 years instead of 5 years), a robust and annually declining emissions cap (21% reduction in 2020 compared to 2005) and a substantial increase in the amount of auctioning (from less than 4% in phase 2 to more than half in phase 3).
More harmonisation has been agreed in many areas, including with respect to the cap-setting (an EU-wide cap instead of the national caps in phases 1 and 2) and the rules for transitional free allocation.
The fairness of the system has been substantially increased by the move towards EU-wide free allocation rules for industrial installations and by the introduction of a redistribution mechanism that entitles new Member States to auction more allowances.
How does the final text compare to the initial Commission proposal?
The climate and energy targets agreed by the 2007 Spring European Council have been maintained and the overall architecture of the Commission's proposal on the EU ETS remains intact. That is to say that there will be one EU-wide cap on the number of emission allowances and this cap will decrease annually along a linear trend line, which will continue beyond the end of the third trading period (2018-2020). The main difference as compared to the proposal is that auctioning of allowances will be phased in more slowly.
What are the main changes compared to the Commission's proposal?
In summary, the main changes that have been made to the proposal are as follows:
Certain Member States are allowed an optional and temporary derogation from the rule that no allowances are to be allocated free of charge to electricity generators as of 2018. This option to derogate is available to Member States which fulfil certain conditions related to the interconnectivity of their electricity grid, share of a single fossil fuel in electricity production, and GDP/capita in relation to the EU-27 average. In addition, the amount of free allowances that a Member State can allocate to power plants is limited to 70% of carbon dioxide emissions of relevant plants in phase 1 and declines in the years thereafter. Furthermore free allocation in phase 3 can only be given to power plants that are operational or under construction no later than end 2008. See reply to question 15 below. There will be more details in the Directive on the criteria to be used to determine the sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage , and an earlier date of publication of the Commission's list of such sectors (31 December 2009). Moreover, subject to review when a satisfactory international agreement is reached, installations in all exposed industries will receive 100% free allowances to the extent that they use the most efficient technology. The free allocation to industry is limited to the share of these industries' emissions in total emissions in 2005 to 2007. The total number of allowances allocated for free to installations in industry sectors will decline annually in line with the decline of the emissions cap. Member States may also compensate certain installations for CO 2 costs passed on in electricity prices if the CO 2 costs might otherwise expose them to the risk of carbon leakage. The Commission has undertaken to modify the Community guidelines on state aid for environmental protection in this respect. See reply to question 15 below. The level of auctioning of allowances for non-exposed industry will increase in a linear manner as proposed by the Commission, but rather than reaching 100% by 2020 it will reach 70%, with a view to reaching 100% by 2027. As foreseen in the Commission's proposal, 10% of the allowances for auctioning will be redistributed from Member States with high per capita income to those with low per capita income in order to strengthen the financial capacity of the latter to invest in climate friendly technologies. A provision has been added for another redistributive mechanism of 2% of auctioned allowances to take into account Member States which in 2005 had achieved a reduction of at least 20% in greenhouse gas emissions compared with the reference year set by the Kyoto Protocol. The share of auctioning revenues that Member States are recommended to use to fight and adapt to climate change mainly within the EU, but also in developing countries, is raised from 20% to 50%. The text provides for a top-up to the proposed permitted level of use of JI/CDM credits in the 20% scenario for existing operators that received the lowest budgets to import and use such credits in relation to allocations and access to credits in the period 2008-2018. New sectors, new entrants in the periods 2018-2020 and 2008-2018 will also be able to use credits. The total amount of credits that may be used will, however, not exceed 50% of the reduction between 2008 and 2020. Based on a stricter emissions reduction in the context of a satisfactory international agreement, the Commission could allow additional access to CERs and ERUs for operators in the Community scheme. See reply to question 20 below. The proceeds from auctioning 300 million allowances from the new entrants reserve will be used to support up to 12 carbon capture and storage demonstration projects and projects demonstrating innovative renewable energy technologies. A number of conditions are attached to this financing mechanism. See reply to question 30 below. The possibility to opt-out small combustion installations provided they are subject to equivalent measures has been extended to cover all small installations irrespective of activity, the emission threshold has been raised from 10,000 to 25,000 tonnes of CO 2 per year, and the capacity threshold that combustion installations have to fulfil in addition has been raised from 25MW to 35MW. With these increased thresholds, the share of covered emissions that would potentially be excluded from the emissions trading system becomes significant, and consequently a provision has been added to allow for a corresponding reduction of the EU-wide cap on allowances.
Will there still be national allocation plans (NAPs)?
No. In their NAPs for the first (2005-2007) and the second (2008-2018) trading periods, Member States determined the total quantity of allowances to be issued – the cap – and how these would be allocated to the installations concerned. This approach has generated significant differences in allocation rules, creating an incentive for each Member State to favour its own industry, and has led to great complexity.
As from the third trading period, there will be a single EU-wide cap and allowances will be allocated on the basis of harmonised rules. National allocation plans will therefore not be needed any more.
How will the emission cap in phase 3 be determined?
The rules for calculating the EU-wide cap are as follows:
From 2018, the total number of allowances will decrease annually in a linear manner. The starting point of this line is the average total quantity of allowances (phase 2 cap) to be issued by Member States for the 2008-12 period, adjusted to reflect the broadened scope of the system from 2018 as well as any small installations that Member States have chosen to exclude. The linear factor by which the annual amount shall decrease is 1.74% in relation to the phase 2 cap.
The starting point for determining the linear factor of 1.74% is the 20% overall reduction of greenhouse gases compared to 1990, which is equivalent to a 14% reduction compared to 2005. However, a larger reduction is required of the EU ETS because it is cheaper to reduce emissions in the ETS sectors. The division that minimises overall reduction cost amounts to:
a 21% reduction in EU ETS sector emissions compared to 2005 by 2020; a reduction of around 10% compared to 2005 for the sectors that are not covered by the EU ETS.
The 21% reduction in 2020 results in an ETS cap in 2020 of a maximum of 1720 million allowances and implies an average phase 3 cap (2018 to 2020) of some 1846 million allowances and a reduction of 11% compared to the phase 2 cap.
All absolute figures indicated correspond to the coverage at the start of the second trading period and therefore don't take account of aviation, which will be added in 2018, and other sectors that will be added in phase 3.
The final figures for the annual emission caps in phase 3 will be determined and published by the Commission by 30 September 2018.
How will the emission cap beyond phase 3 be determined?
The linear factor of 1.74% used to determine the phase 3 cap will continue to apply beyond the end of the trading period in 2020 and will determine the cap for the fourth trading period (2021 to 2028) and beyond. It may be revised by 2025 at the latest. In fact, significant emission reductions of 60%-80% compared to 1990 will be necessary by 2050 to reach the strategic objective of limiting the global average temperature increase to not more than 2°C above pre-industrial levels.
An EU-wide cap on emission allowances will be determined for each individual year. Will this reduce flexibility for the installations concerned?
No, flexibility for installations will not be reduced at all. In any year, the allowances to be auctioned and distributed have to be issued by the competent authorities by 28 February. The last date for operators to surrender allowances is 30 April of the year following the year in which the emissions took place. So operators receive allowances for the current year before they have to surrender allowances to cover their emissions for the previous year. Allowances remain valid throughout the trading period and any surplus allowances can now be "banked" for use in subsequent trading periods. In this respect nothing will change.
The system will remain based on trading periods, but the third trading period will last eight years, from 2018 to 2020, as opposed to five years for the second phase from 2008 to 2018.
For the second trading period Member States generally decided to allocate equal total quantities of allowances for each year. The linear decrease each year from 2018 will correspond better to expected emissions trends over the period.
What are the tentative annual ETS cap figures for the period 2018 to 2020?
The tentative annual cap figures are as follows:
These figures are based on the scope of the ETS as applicable in phase 2 (2008 to 2018), and the Commission's decisions on the national allocation plans for phase 2, amounting to 2083 million tonnes. These figures will be adjusted for several reasons. Firstly, adjustment will be made to take into account the extensions of the scope in phase 2, provided that Member States substantiate and verify their emissions accruing from these extensions. Secondly, adjustment will be made with respect to further extensions of the scope of the ETS in the third trading period. Thirdly, any opt-out of small installations will lead to a corresponding reduction of the cap. Fourthly, the figures do not take account of the inclusion of aviation, nor of emissions from Norway, Iceland and Liechtenstein.
Will allowances still be allocated for free?
نعم فعلا. Industrial installations will receive transitional free allocation. And in those Member States that are eligible for the optional derogation, power plants may, if the Member State so decides, also receive free allowances. It is estimated that at least half of the available allowances as of 2018 will be auctioned.
While the great majority of allowances has been allocated free of charge to installations in the first and second trading periods, the Commission proposed that auctioning of allowances should become the basic principle for allocation. This is because auctioning best ensures the efficiency, transparency and simplicity of the system and creates the greatest incentive for investments in a low-carbon economy. It best complies with the “polluter pays principle” and avoids giving windfall profits to certain sectors that have passed on the notional cost of allowances to their customers despite receiving them for free.
How will allowances be handed out for free?
By 31 December 2018, the Commission will adopt EU-wide rules, which will be developed under a committee procedure (“Comitology”). These rules will fully harmonise allocations and thus all firms across the EU with the same or similar activities will be subject to the same rules. The rules will ensure as far as possible that the allocation promotes carbon-efficient technologies. The adopted rules provide that to the extent feasible, allocations are to be based on so-called benchmarks, e. g. a number of allowances per quantity of historical output. Such rules reward operators that have taken early action to reduce greenhouse gases, better reflect the polluter pays principle and give stronger incentives to reduce emissions, as allocations would no longer depend on historical emissions. All allocations are to be determined before the start of the third trading period and no ex-post adjustments will be allowed.
Which installations will receive free allocations and which will not? How will negative impacts on competitiveness be avoided?
Taking into account their ability to pass on the increased cost of emission allowances, full auctioning is the rule from 2018 onwards for electricity generators. However, Member States who fulfil certain conditions relating to their interconnectivity or their share of fossil fuels in electricity production and GDP per capita in relation to the EU-27 average, have the option to temporarily deviate from this rule with respect to existing power plants. The auctioning rate in 2018 is to be at least 30% in relation to emissions in the first period and has to increase progressively to 100% no later than 2020. If the option is applied, the Member State has to undertake to invest in improving and upgrading of the infrastructure, in clean technologies and in diversification of their energy mix and sources of supply for an amount to the extent possible equal to the market value of the free allocation.
In other sectors, allocations for free will be phased out progressively from 2018, with Member States agreeing to start at 20% auctioning in 2018, increasing to 70% auctioning in 2020 with a view to reaching 100% in 2027. However, an exception will be made for installations in sectors that are found to be exposed to a significant risk of 'carbon leakage'. This risk could occur if the EU ETS increased production costs so much that companies decided to relocate production to areas outside the EU that are not subject to comparable emission constraints. The Commission will determine the sectors concerned by 31 December 2009. To do this, the Commission will assess inter alia whether the direct and indirect additional production costs induced by the implementation of the ETS Directive as a proportion of gross value added exceed 5% and whether the total value of its exports and imports divided by the total value of its turnover and imports exceeds 10%. If the result for either of these criteria exceeds 30%, the sector would also be considered to be exposed to a significant risk of carbon leakage. Installations in these sectors would receive 100% of their share in the annually declining total quantity of allowances for free. The share of these industries' emissions is determined in relation to total ETS emissions in 2005 to 2007.
CO 2 costs passed on in electricity prices could also expose certain installations to the risk of carbon leakage. In order to avoid such risk, Member States may grant a compensation with respect to such costs. In the absence of an international agreement on climate change, the Commission has undertaken to modify the Community guidelines on state aid for environmental protection in this respect.
Under an international agreement which ensures that competitors in other parts of the world bear a comparable cost, the risk of carbon leakage may well be negligible. Therefore, by 30 June 2018, the Commission will carry out an in-depth assessment of the situation of energy-intensive industry and the risk of carbon leakage, in the light of the outcome of the international negotiations and also taking into account any binding sectoral agreements that may have been concluded. The report will be accompanied by any proposals considered appropriate. These could potentially include maintaining or adjusting the proportion of allowances received free of charge to industrial installations that are particularly exposed to global competition or including importers of the products concerned in the ETS.
Who will organise the auctions and how will they be carried out?
Member States will be responsible for ensuring that the allowances given to them are auctioned. Each Member State has to decide whether it wants to develop its own auctioning infrastructure and platform or whether it wants to cooperate with other Member States to develop regional or EU-wide solutions. The distribution of the auctioning rights to Member States is largely based on emissions in phase 1 of the EU ETS, but a part of the rights will be redistributed from richer Member States to poorer ones to take account of the lower GDP per head and higher prospects for growth and emissions among the latter. It is still the case that 10% of the rights to auction allowances will be redistributed from Member States with high per capita income to those with low per capita income in order to strengthen the financial capacity of the latter to invest in climate friendly technologies. However, a provision has been added for another redistributive mechanism of 2% to take into account Member States which in 2005 had achieved a reduction of at least 20% in greenhouse gas emissions compared with the reference year set by the Kyoto Protocol. Nine Member States benefit from this provision.
Any auctioning must respect the rules of the internal market and must therefore be open to any potential buyer under non-discriminatory conditions. By 30 June 2018, the Commission will adopt a Regulation (through the comitology procedure) that will provide the appropriate rules and conditions for ensuring efficient, coordinated auctions without disturbing the allowance market.
How many allowances will each Member State auction and how is this amount determined?
All allowances which are not allocated free of charge will be auctioned. A total of 88% of allowances to be auctioned by each Member State is distributed on the basis of the Member State's share of historic emissions under the EU ETS. For purposes of solidarity and growth, 12% of the total quantity is distributed in a way that takes into account GDP per capita and the achievements under the Kyoto-Protocol.
Which sectors and gases are covered as of 2018?
The ETS covers installations performing specified activities. Since the start it has covered, above certain capacity thresholds, power stations and other combustion plants, oil refineries, coke ovens, iron and steel plants and factories making cement, glass, lime, bricks, ceramics, pulp, paper and board. As for greenhouse gases, it currently only covers carbon dioxide emissions, with the exception of the Netherlands, which has opted in emissions from nitrous oxide.
As from 2018, the scope of the ETS will be extended to also include other sectors and greenhouse gases. CO 2 emissions from petrochemicals, ammonia and aluminium will be included, as will N2O emissions from the production of nitric, adipic and glyocalic acid production and perfluorocarbons from the aluminium sector. The capture, transport and geological storage of all greenhouse gas emissions will also be covered. These sectors will receive allowances free of charge according to EU-wide rules, in the same way as other industrial sectors already covered.
As of 2018, aviation will also be included in the EU ETS.
Will small installations be excluded from the scope?
A large number of installations emitting relatively low amounts of CO 2 are currently covered by the ETS and concerns have been raised over the cost-effectiveness of their inclusion. As from 2018, Member States will be allowed to remove these installations from the ETS under certain conditions. The installations concerned are those whose reported emissions were lower than 25 000 tonnes of CO 2 equivalent in each of the 3 years preceding the year of application. For combustion installations, an additional capacity threshold of 35MW applies. In addition Member States are given the possibility to exclude installations operated by hospitals. The installations may be excluded from the ETS only if they will be covered by measures that will achieve an equivalent contribution to emission reductions.
How many emission credits from third countries will be allowed?
For the second trading period, Member States allowed their operators to use significant quantities of credits generated by emission-saving projects undertaken in third countries to cover part of their emissions in the same way as they use ETS allowances. The revised Directive extends the rights to use these credits for the third trading period and allows a limited additional quantity to be used in such a way that the overall use of credits is limited to 50% of the EU-wide reductions over the period 2008-2020. For existing installations, and excluding new sectors within the scope, this will represent a total level of access of approximately 1.6 billion credits over the period 2008-2020. In practice, this means that existing operators will be able to use credits up to a minimum of 11% of their allocation during the period 2008-2018, while a top-up is foreseen for operators with the lowest sum of free allocation and allowed use of credits in the 2008-2018 period. New sectors and new entrants in the third trading period will have a guaranteed minimum access of 4.5% of their verified emissions during the period 2018-2020. For the aviation sector, the minimum access will be 1.5%. The precise percentages will be determined through comitology.
These projects must be officially recognised under the Kyoto Protocol’s Joint Implementation (JI) mechanism (covering projects carried out in countries with an emissions reduction target under the Protocol) or Clean Development Mechanism (CDM) (for projects undertaken in developing countries). Credits from JI projects are known as Emission Reduction Units (ERUs) while those from CDM projects are called Certified Emission Reductions (CERs).
On the quality side only credits from project types eligible for use in the EU trading scheme during the period 2008-2018 will be accepted in the period 2018-2020. Furthermore, from 1 January 2018 measures may be applied to restrict the use of specific credits from project types. Such a quality control mechanism is needed to assure the environmental and economic integrity of future project types.
To create greater flexibility, and in the absence of an international agreement being concluded by 31 December 2009, credits could be used in accordance with agreements concluded with third countries. The use of these credits should however not increase the overall number beyond 50% of the required reductions. Such agreements would not be required for new projects that started from 2018 onwards in Least Developed Countries.
Based on a stricter emissions reduction in the context of a satisfactory international agreement , additional access to credits could be allowed, as well as the use of additional types of project credits or other mechanisms created under the international agreement. However, once an international agreement has been reached, from January 2018 onwards only credits from projects in third countries that have ratified the agreement or from additional types of project approved by the Commission will be eligible for use in the Community scheme.
Will it be possible to use credits from carbon ‘sinks’ like forests?
No. Before making its proposal, the Commission analysed the possibility of allowing credits from certain types of land use, land-use change and forestry (‘LULUCF’) projects which absorb carbon from the atmosphere. It concluded that doing so could undermine the environmental integrity of the EU ETS, for the following reasons:
LULUCF projects cannot physically deliver permanent emissions reductions. Insufficient solutions have been developed to deal with the uncertainties, non-permanence of carbon storage and potential emissions 'leakage' problems arising from such projects. The temporary and reversible nature of such activities would pose considerable risks in a company-based trading system and impose great liability risks on Member States. The inclusion of LULUCF projects in the ETS would require a quality of monitoring and reporting comparable to the monitoring and reporting of emissions from installations currently covered by the system. This is not available at present and is likely to incur costs which would substantially reduce the attractiveness of including such projects. The simplicity, transparency and predictability of the ETS would be considerably reduced. Moreover, the sheer quantity of potential credits entering the system could undermine the functioning of the carbon market unless their role were limited, in which case their potential benefits would become marginal.
The Commission, the Council and the European Parliament believe that global deforestation can be better addressed through other instruments. For example, using part of the proceeds from auctioning allowances in the EU ETS could generate additional means to invest in LULUCF activities both inside and outside the EU, and may provide a model for future expansion. In this respect the Commission has proposed to set up the Global Forest Carbon Mechanism that would be a performance-based system for financing reductions in deforestation levels in developing countries.
Besides those already mentioned, are there other credits that could be used in the revised ETS?
نعم فعلا. Projects in EU Member States which reduce greenhouse gas emissions not covered by the ETS could issue credits. These Community projects would need to be managed according to common EU provisions set up by the Commission in order to be tradable throughout the system. Such provisions would be adopted only for projects that cannot be realised through inclusion in the ETS. The provisions will seek to ensure that credits from Community projects do not result in double-counting of emission reductions nor impede other policy measures to reduce emissions not covered by the ETS, and that they are based on simple, easily administered rules.
Are there measures in place to ensure that the price of allowances won't fall sharply during the third trading period?
A stable and predictable regulatory framework is vital for market stability. The revised Directive makes the regulatory framework as predictable as possible in order to boost stability and rule out policy-induced volatility. Important elements in this respect are the determination of the cap on emissions in the Directive well in advance of the start of the trading period, a linear reduction factor for the cap on emissions which continues to apply also beyond 2020 and the extension of the trading period from 5 to 8 years. The sharp fall in the allowance price during the first trading period was due to over-allocation of allowances which could not be “banked” for use in the second trading period. For the second and subsequent trading periods, Member States are obliged to allow the banking of allowances from one period to the next and therefore the end of one trading period is not expected to have any impact on the price.
A new provision will apply as of 2018 in case of excessive price fluctuations in the allowance market. If, for more than six consecutive months, the allowance price is more than three times the average price of allowances during the two preceding years on the European market, the Commission will convene a meeting with Member States. If it is found that the price evolution does not correspond to market fundamentals, the Commission may either allow Member States to bring forward the auctioning of a part of the quantity to be auctioned, or allow them to auction up to 25% of the remaining allowances in the new entrant reserve.
The price of allowances is determined by supply and demand and reflects fundamental factors like economic growth, fuel prices, rainfall and wind (availability of renewable energy) and temperature (demand for heating and cooling) etc. A degree of uncertainty is inevitable for such factors. The markets, however, allow participants to hedge the risks that may result from changes in allowances prices.
Are there any provisions for linking the EU ETS to other emissions trading systems?
نعم فعلا. One of the key means to reduce emissions more cost-effectively is to enhance and further develop the global carbon market. The Commission sees the EU ETS as an important building block for the development of a global network of emission trading systems. Linking other national or regional cap-and-trade emissions trading systems to the EU ETS can create a bigger market, potentially lowering the aggregate cost of reducing greenhouse gas emissions. The increased liquidity and reduced price volatility that this would entail would improve the functioning of markets for emission allowances. This may lead to a global network of trading systems in which participants, including legal entities, can buy emission allowances to fulfil their respective reduction commitments.
The EU is keen to work with the new US Administration to build a transatlantic and indeed global carbon market to act as the motor of a concerted international push to combat climate change.
While the original Directive allows for linking the EU ETS with other industrialised countries that have ratified the Kyoto Protocol, the new rules allow for linking with any country or administrative entity (such as a state or group of states under a federal system) which has established a compatible mandatory cap-and-trade system whose design elements would not undermine the environmental integrity of the EU ETS. Where such systems cap absolute emissions, there would be mutual recognition of allowances issued by them and the EU ETS.
What is a Community registry and how does it work?
Registries are standardised electronic databases ensuring the accurate accounting of the issuance, holding, transfer and cancellation of emission allowances. As a signatory to the Kyoto Protocol in its own right, the Community is also obliged to maintain a registry. This is the Community Registry, which is distinct from the registries of Member States. Allowances issued from 1 January 2018 onwards will be held in the Community registry instead of in national registries.
Will there be any changes to monitoring, reporting and verification requirements?
The Commission will adopt a new Regulation (through the comitology procedure) by 31 December 2018 governing the monitoring and reporting of emissions from the activities listed in Annex I of the Directive. A separate Regulation on the verification of emission reports and the accreditation of verifiers should specify conditions for accreditation, mutual recognition and cancellation of accreditation for verifiers, and for supervision and peer review as appropriate.
What provision will be made for new entrants into the market?
Five percent of the total quantity of allowances will be put into a reserve for new installations or airlines that enter the system after 2018 (“new entrants”). The allocations from this reserve should mirror the allocations to corresponding existing installations.
A part of the new entrant reserve, amounting to 300 million allowances, will be made available to support the investments in up to 12 demonstration projects using the carbon capture and storage technology and demonstration projects using innovative renewable energy technologies. There should be a fair geographical distribution of the projects.
In principle, any allowances remaining in the reserve shall be distributed to Member States for auctioning. The distribution key shall take into account the level to which installations in Member States have benefited from this reserve.
What has been agreed with respect to the financing of the 12 carbon capture and storage demonstration projects requested by a previous European Council?
The European Parliament's Environment Committee tabled an amendment to the EU ETS Directive requiring allowances in the new entrant reserve to be set aside in order to co-finance up to 12 demonstration projects as requested by the European Council in spring 2007. This amendment has later been extended to include also innovative renewable energy technologies that are not commercially viable yet. Projects shall be selected on the basis of objective and transparent criteria that include requirements for knowledge sharing. Support shall be given from the proceeds of these allowances via Member States and shall be complementary to substantial co-financing by the operator of the installation. No project shall receive support via this mechanism that exceeds 15% of the total number of allowances (i. e. 45 million allowances) available for this purpose. The Member State may choose to co-finance the project as well, but will in any case transfer the market value of the attributed allowances to the operator, who will not receive any allowances.
A total of 300 million allowances will therefore be set aside until 2018 for this purpose.
What is the role of an international agreement and its potential impact on EU ETS?
When an international agreement is reached, the Commission shall submit a report to the European Parliament and the Council assessing the nature of the measures agreed upon in the international agreement and their implications, in particular with respect to the risk of carbon leakage. On the basis of this report, the Commission shall then adopt a legislative proposal amending the present Directive as appropriate.
For the effects on the use of credits from Joint Implementation and Clean Development Mechanism projects, please see the reply to question 20.
What are the next steps?
Member States have to bring into force the legal instruments necessary to comply with certain provisions of the revised Directive by 31 December 2009. This concerns the collection of duly substantiated and verified emissions data from installations that will only be covered by the EU ETS as from 2018, and the national lists of installations and the allocation to each one. For the remaining provisions, the national laws, regulations and administrative provisions only have to be ready by 31 December 2018.
The Commission has already started the work on implementation. For example, the collection and analysis of data for use in relation to carbon leakage is ongoing (list of sectors due end 2009). Work is also ongoing to prepare the Regulation on timing, administration and other aspects of auctioning (due by June 2018), the harmonised allocation rules (due end 2018) and the two Regulations on monitoring and reporting of emissions and verification of emissions and accreditation of verifiers (due end 2018).
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