Home

Proposals to improve and extend greenhouse gas emission allowance trading system of the European Community

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+COMPARL+PE-407.778+01+DOC+PDF+V0//EN&language=EN

 

The European Commission proposals for the third phase of the Emission Trading System (ETS) are planned to be adopted by the end of 2008. They include extending it to other industries such as chemical and aluminium production. They also include a single EU-wide cap for  greenhouse gases, as opposed to national plans and allocations. It also wants future allocations to be by auctioning and for free allocation to be exceptional and to be decreased. A draft report was presented to the Environment Committee at the end of June 2008 which considered these proposals to be "balanced" and would "significantly improve and strengthen" the ETS. However, the report proposed a number of amendments:

 

  • Notably that 50 per cent (rather than 20 per cent as foreseen by the Commission) of revenues from auctioning should be directed towards environmental and climate protection measures such as reducing deforestation;
  • Emission credits are to be awarded to the operators of the first 12 facilities that are using Carbon Capture and Storage (CCS) technology before 2013; and
  • By the end of 2010, the European Commission should indicate the amount of allowances to be auctioned for the period 2013 to 2020, in order to ensure planning and predictability for industries. 

     

Strict rules to be applied to which kind of credits / emission allowances are given for investment in green and renewable energy projects;

news | 14-04 | carbon trading & offsetting | Europe and international | private sector