Evaluation of the eu ets directive publications office. Directive 200387ec of the european parliament and of the council 4. In spring 2009, the european union announced plans to expand the scope of its emissions trading scheme ets to include aviation. The eu emissions trading system eu ets is a cornerstone of the eus policy to combat climate change and its key tool for reducing greenhouse gas emissions costeffectively. The european commission announces auctioning is the preferable mechanism to distribute emissions permits. In 2008, the eu issued the directive 2008101ec on including aviation. Commission decision of 27 april 2011 determining transitional unionwide rules for harmonised free allocation of emission allowances benchmarking decision. It was established in 2005 and is now implemented in 28 eu member states and three noneu. Development of the ets position of the european cement industry the formulation of the ets 20002001. It achieves its environmental goal by definition the aggregate emissions of a large number of covered entities cannot exceed an absolute ceiling of annual emissions. It is the cornerstone of eu policy towards combatting climate change by. Member states may use this guidance already when they perform the data col lection pursuant to article 9a2, which is to be carried out by 30 april 2010. In july 2015, the european commission proposed a reform of the eu emissions trading system e ts for the period 20212030, following the guidance set by the october 2014 european council.
The registry ensures the meticulous accounting of emission allowances issued within the eu, but can also contain carbon credits. It was approved by the swiss parliament on 22 march 2019 and was ratified by switzerland and the eu in december 2019. The eu ets was established by the directive of the european parliament and the european council in october 2003. The cap will decline based on an annual linear reduction factor of 2. Consultation on revision of the eu emission trading system eu ets directive cepis consultation response march 2015 key messages. With the revised eu ets directive, which will enter into force on 1st january 20, the rules governing free allocation of allowances have been dramatically modified. This study therefore evaluates the eu emissions trading directive in light of potential changes to it within europes overall climate and energy package 2030. Phase iv of the euets, which will apply post2020, is now being debated at eu level. This study therefore evaluates the eu emissions trading directive in light of potential. The eu emissions trading system eu ets is a core pillar of the eus climate change mitigation policy.
Guidance note on interpretation of the scope of the eu ets. The registry keeps track of the ownership of these allowances and credits, which can only be held in electronic accounts in the registry. Based on the latest available data, this briefing provides an overview of past and. The green paper on greenhouse gas emissions trading within the european union launched a debate across europe on the suitability and possible functioning of greenhouse gas emissions trading within the european union. Evaluation of the eu ets directive ecologic institute.
Introduction on 24 october 2014, the european council agreed on the 2030 framework for climate and energy 1, including a binding domestic target for reducing greenhouse gas ghg emissions of at least 40% in 2030 as compared to 1990. A directive in 2008 amended the eu ets directive to cover co. It is the worlds first major carbon market and remains the biggest one. The proposed directive introduces a new limit on greenhouse gas gh g emissions in the ets sector to achieve the eu climate targets. In simple terms, euets for aviation is a mandatory regulation requiring all noncommercial operators who travel into, out of, and between eu member states, eea counties, and applicable eu territories to monitor their co 2 flight emissions. Among other things, the proposal includes the target that emissions in the eu ets should be reduced, compared to 2005, by 43%. Consultation on revision of the eu emission trading system. L 764 en official jour nal of the european union 19.
Document viewer the document doesnt have a viewable format at this time. Article 105 of the eu ets directive provides for such a yearly assessment, to be carried out by the european commission. Linking the swiss emissions trading scheme with that of the eu would be beneficial for both environmental policy and the economy. Commission decision of 27 april 2011 determining transitional unionwide rules for harmonised free allocation of emission allowances benchmarking decision monitoring and reporting regulation. Eu emissions trading system energy systems catapult. The eu emissions trading system eu ets european commission. Commissions proposal for revision of the eu ets directive foresees that the share of allowances to be auctioned will remain the same after 2020. In 2003, member states agreed to a supranational emissions trading scheme, the eu ets directive 200387ec. The revised european union emissions trading system eu ets directive and phase iv of the eu ets directive 200387ec of the european parliament and of the council established a system for greenhouse gas emission allowance trading within the union, the eu ets, in order to promote. The eu ets phase iv reform oxford institute for energy. The eu is currently finalizing the implementation of its 2030 climate framework. In this respect, the eu ets is not different, and should not be treated differently, from any other activity. The european union s ets registry is established pursuant to directive 200387ec. The eu emissions trading scheme regulatory guidance the regulatory guidance for installations describes the.
Following the adoption of the revised ets directive setting the cornerstones of the post2020 policy framework, in 2019, the focus shifted. Eu ets phase i the first implementation phase also referred to as phase i, pilot phase, learning by doing period of the eu ets ran from 2005 to 2007. Consultation on revision of the eu emission trading system eu ets directive fields marked with are mandatory. Revision of the eu ets directive dutch emissions authority. Under the current eu ets directive, at least 50% of the revenues generated from the auctioning if the objectives of the eu ets are to promote reductions of greenhouse gas emissions in a costeffective and economically efficient manner article 1, we can consider that these do match the eu climate policy objective. Directive 200387ec of the european parliament and of the council of october 2003 establishing a scheme for greenhouse gas emission allowance trading. Assessing the effectiveness of the eu emissions trading scheme1 tim laing2, misato sato3, michael grubb4 and claudia comberti5 abstract as an increasing number of countries, regions, cities and states implement emissions trading policies to limit co 2 emission, many turn to the experience of the european. Revision of the eu ets directive in the context of the eu. Analysis of national responses under article 21 of the eu ets directive application of the european union emissions trading directive in 2015 european environment agency do something for our planet, print this page only if needed.
Directive 200387ec of the european parliament and of the council of october 2003 establishing a scheme for greenhouse gas emission allowance trading within the union eu ets directive establishes the european union system for greenhouse gas emission allowance trading in order to promote reductions of greenhouse gas emissions in a costeffective and. Environment councilconsiderations for the ets directive. It covers 45% of eu emissions, including energy intensive sectors and approximately 12,000 installations. The report uses a systematic approach to evaluate the relevance, effectiveness, efficiency, coherence and eu added value of the eu ets directive. The revised eu ets directive, which will apply for the period 20212030, will enable this through a mix of interlinked measures. Application of the european union emissions trading. European union emissions trading system eu ets phase iii. Ets directive, which is the scope of the eu ets from 20 onwards. The european union launched the eu emissions trading system eu ets in 2005 as the cornerstone of its strategy for cutting emissions of carbon dioxide co2 and other greenhouse gases at least cost. The ets revision translates into a legal proposal the political agreement that was reached by european heads of states on the eus 2030 climate and energy framework in october 2014 here. The revised ets directive introduces significant modifications to the eu ets from phase iii so that it makes a more efficient and greater contribution to tackling climate change, and creates more predictable market conditions and improved. The proposed framework offers a realistic approach which would be immune to disputes at the wto and comply with international climate agreements while remaining economically. Carbon pricing through an emissions trading system needs to be one of the tools deployed by the eu to help meet its ghg reduction goals.
Assessing the effectiveness of the eu emissions trading. The eu ets also known as the european union emissions trading scheme puts a cap on the carbon dioxide co2 emitted by business and creates a market and price for carbon allowances. E ts was established by the ets directive 200387ec, amended by directive 200929ec setting out rules for the third phase 2 020. This work includes a revision of the eus emissions trading system eu ets, the eus flagship climate instrument. The european parliament ep and the council adopted their positions on the eu ets revision earlier this year and are currently holding talks to reach an agreement on how to. Chp plants have been the direct recipients of free eu ets allowances since the eu etss inception and entry into force in 2005. Assessing the eu commissions proposals for the new eu. Eu lawmakers concerned over corsia proposal that could breach ets directive. The eu ets is the cornerstone of the european unions drive to reduce its emissions of man made greenhouse gases which are largely responsible for warming the planet and causing climate change. The european union eu emissions trading system ets governs about 40 % of total eu greenhouse gas emissions.
The european union emissions trading system eu ets is a cornerstone of the eus policy to combat climate change and a key tool for costeffectively reducing ghg emissions from the regulated sectors. In 2004, the directive was amended to link the eu ets with the international carbon market, 3. Comments on eu aviation ets directive and eu china. It sets a cap on emissions from industrial activities e. Environment councilconsiderations for the ets directive revision 15th december the position theeuropean parliaments envi committee adopted on the ets directive revision is pragmatic. The revised eu ets directive adds the obligation to also report on other relevant climate and energy. The european union emissions trading system reduced co2. Climate border adjustments and wto law extending the eu. The document puts forward several amendments to the ets directive. Eu lawmakers concerned over corsia proposal that could. The ets in general, and the benchmarks in particular, should reward installations and sectors reducing ghg emissions, without penalising early movers, new investment made, and lowcarbon economic growth. An amendment to the eu ets directive agreed in july 2008 included the aviation sector in the system from 2012.
The allocation rules for phase one eu ets emissions permits. On 15 july 2015, the european commission released a proposal for a revised eu ets directive for the next phase of the eu emissions trading schema from 2021 until 2030. Directive 200387 ec of the european parliament and of the council of october 2003 establishing a scheme for greenhouse gas emission allowance trading within the community and amending council directive 9661ec text with eea relevance oj l 275, 25. Revision for phase 4 20212030 policyto achieve the eus overall greenhouse gas emissions reduction target for 2030, the sectors covered by the eu emissions trading system eu ets must reduce their emissions by 43% compared to 2005 levels. Emissions trading system revised directive 200929ec in s. Post2020 reform of the eu emissions trading system summary in july 2015, the european commission proposed a reform of the eu emissions. In climate border adjustments and wto law, ulrike will develops a convincing reform proposal for a climate border adjustment ba on imports within the eu emission trading system ets. Eu ets phase iii applies to you if you carry out any of the activities listed in annex i to the eu ets directive. Transposition of eu directive 200929ec revising eu. The system covers 45% of the eus emissions, from the power sector, manufacturing industry, and aviation limited to flights within the european.
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