Eu ets trading system

Pertanyaan dan jawaban atas proposal untuk merevisi sistem perdagangan emisi UE (EU ETS) Brussels, 15 Juli 2015 Lihat juga: Siaran pers. Mengubah sistem energi Europes - Komisi paket energi musim panas memimpin jalan (15 Juli 2015) 1. Mengapa Komisi hari ini mengusulkan revisi ETS UE Komisi Eropa telah mengajukan sebuah proposal legislatif untuk merevisi Sistem Perdagangan Emisi UE (EU Emissions Trading System / ETS) secara garis lurus Dengan kerangka kerja kebijakan iklim dan energi 2030 yang disepakati oleh para pemimpin Uni Eropa pada bulan Oktober 2014. Proposal tersebut merupakan bagian integral dari pekerjaan untuk mencapai Serikat Energi yang tangguh dengan kebijakan iklim yang berwawasan ke depan sebagai prioritas utama Komisi Juncker, yang diluncurkan pada Februari 2015. Ini adalah langkah pertama dalam memenuhi target Uni Eropa untuk mengurangi emisi gas rumah kaca sekurang-kurangnya 40 di dalam negeri pada tahun 2030 sebagai bagian dari kontribusinya terhadap kesepakatan iklim global baru yang akan diadopsi di Paris pada bulan Desember ini. Proposal ini mengirimkan pesan yang kuat kepada masyarakat internasional pada saat kritis ketika pemain besar lainnya seperti G7 dan China juga menunjukkan tekad mereka. EU ETS adalah pasar karbon terbesar di dunia. Proposal Todays bertujuan untuk memastikan bahwa EU ETS merupakan landasan kebijakan iklim Uni Eropa yang tetap merupakan cara yang paling efisien untuk mengurangi emisi dalam dekade yang akan datang. Dengan demikian dapat membangun pengalaman oleh perusahaan dan otoritas publik sejak dekade pertama pelaksanaannya. ETS Uni Eropa harus terus menginspirasi mitra internasional lainnya, seperti China, untuk menggunakan penetapan harga karbon sebagai penggerak hemat biaya untuk dekarbonisasi bertahap ekonomi berkelanjutan untuk keuntungan generasi mendatang. Tindakan iklim ambisius menciptakan peluang bisnis dan membuka pasar baru untuk teknologi rendah karbon. Proposal Todays menegaskan bahwa tindakan iklim dan daya saing berjalan beriringan. ETS EU yang direvisi akan memberikan insentif yang lebih kuat untuk inovasi dan terus memastikan bahwa industri Eropa tetap kompetitif di pasar internasional. Dana tambahan dari EU ETS disediakan untuk inovasi rendah karbon untuk pertama kalinya juga untuk industri dengan energi intensif dan untuk modernisasi sistem energi di Negara-negara Anggota berpenghasilan rendah. Ini selanjutnya akan merangsang serapan energi terbarukan dan teknologi rendah karbon dan hemat energi lainnya, yang disertai dekarbonisasi, tujuan utama lebih lanjut dari Serikat Energi. Akhirnya, ETS EU yang direvisi berdasarkan pada Stabilitas Stabilitas Pasar yang baru disepakati akan memperkuat fungsi pasar energi internal dan memberikan sinyal harga jangka panjang yang lebih baik untuk investasi. Proposal EU ETS hari ini akan memberikan kontribusi pada pasar listrik Eropa yang berfungsi dengan baik yang merupakan sarana terbaik untuk memastikan bahwa listrik dapat dikirim ke konsumen dan industri swasta dengan cara yang paling hemat biaya. 2. Bagaimana revisi tersebut akan menguntungkan warga negara Uni Eropa, industri dan negara-negara anggota. Revisi yang diusulkan memberikan banyak manfaat lingkungan dan ekonomi. Ini akan membantu mengatasi perubahan iklim dengan meningkatkan laju upaya Uni Eropa untuk mengurangi emisi gas rumah kaca. Pemotongan emisi juga mengurangi polusi udara, untuk kepentingan kesehatan warga. Apalagi, membuat Eropa kurang bergantung pada bahan bakar fosil impor. Proposal ini menganjurkan ETS Uni Eropa yang lebih kuat dan berfungsi lebih baik yang membantu menempatkan UE pada jalur menuju ekonomi rendah karbon. Ini membawa peluang yang signifikan bagi bisnis dan industri untuk mengembangkan dan mendapatkan keuntungan dari teknologi dan pasar baru, mendukung inovasi dan membantu menciptakan peluang baru untuk pekerjaan dan pertumbuhan. Proposal tersebut juga mendukung transisi rendah karbon dengan menyediakan lebih banyak dana untuk memenuhi kebutuhan investasi di Negara-negara Anggota berpenghasilan rendah. Pada saat yang sama, Komisi mengakui bahwa mungkin ada risiko bagi beberapa bisnis yang menghadapi persaingan internasional, selama tidak ada upaya iklim yang serupa yang dilakukan di negara-negara besar lainnya. Itu sebabnya proposal tersebut juga mencakup pengaman untuk daya saing internasional industri energi intensif UE. Fokus penting diberikan untuk mengurangi beban administrasi. Berdasarkan proposal tersebut, Negara-negara Anggota akan terus dapat mengecualikan penghasil emisi kecil dari EU ETS, termasuk usaha kecil dan menengah dengan emisi rendah, selama mereka mematuhi langkah-langkah yang setara. 3. Bagaimana revisi EU ETS berkontribusi terhadap upaya iklim internasional Pengurangan emisi EU akan menjadi kontribusi penting bagi upaya internasional untuk membatasi kenaikan suhu rata-rata global di bawah 2C dibandingkan tingkat pra-industri. Secara keseluruhan, ekonomi yang memiliki setidaknya 40 sasaran menggambarkan Uni Eropa melanjutkan komitmennya untuk mendapatkan kesepakatan iklim global yang ambisius dengan komitmen mengikat secara hukum dari semua Pihak di Paris pada bulan Desember ini. Proposal Todays melanjutkan usaha ini dengan menghadirkan langkah pertama dalam memberikan target pengurangan emisi ambisius ini. Keputusan untuk diadopsi di Paris diharapkan dapat memobilisasi pembiayaan iklim, alih teknologi dan pengembangan kapasitas untuk partai-partai yang memenuhi syarat, terutama yang memiliki kemampuan paling sedikit. Pembiayaan iklim sektor publik akan terus memainkan peran penting dalam memobilisasi sumber daya setelah tahun 2020. Untuk mengantisipasi keputusan ini, usulan pemerintah pada saat ini meminta Negara-negara Anggota untuk menggunakan bagian dari pendapatan lelang ETS EU mereka untuk membiayai tindakan iklim di negara-negara di luar UE, termasuk Untuk tindakan untuk menyesuaikan diri dengan dampak perubahan iklim. Ini akan berada di Negara-negara Anggota untuk mencurahkan sebagian dari pendapatan ini dari skema perdagangan emisi untuk mendukung tindakan mitigasi iklim di negara-negara ketiga, termasuk negara-negara berkembang. 4. Bagaimana revisi ETS mempengaruhi jumlah total tunjangan Jumlah keseluruhan tunjangan akan turun sebesar 2,2 setiap tahun mulai 2021. Sejak 2013, metode utama untuk mendistribusikan tunjangan ETS UE telah melalui lelang oleh Negara-negara Anggota. Selama periode perdagangan saat ini (2013 sampai 2020), 57 dari total jumlah tunjangan akan dilelang, sementara tunjangan lainnya tersedia untuk alokasi gratis. Bagian dari tunjangan yang akan dilelang akan tetap sama setelah tahun 2020. Pendapatan dari pelelangan memberi negara-negara anggota dengan dana yang dapat digunakan untuk berbagai tindakan, seperti program energi terbarukan. Mereka juga dapat diarahkan pada langkah-langkah kebijakan sosial untuk mendukung transisi yang adil dan adil menuju ekonomi rendah karbon bagi perusahaan, pekerjanya dan konsumen mereka, selain mendukung upaya tindakan iklim internasional di negara-negara ketiga termasuk negara-negara berkembang. 5. Bagaimana sistem alokasi bebas ditingkatkan setelah tahun 2020 Karena jumlah tunjangan terbatas dan menurun, sistem alokasi bebas perlu direvisi untuk mendistribusikan tunjangan yang tersedia dengan cara yang paling efektif dan efisien. Perubahan yang diusulkan bertujuan untuk meminimalkan kebutuhan akan faktor koreksi1 dan untuk memastikan prediktabilitas bagi perusahaan. Alokasi tunjangan gratis akan difokuskan pada sektor-sektor dengan risiko tertinggi untuk merelokasi produksinya di luar UE. Arsitektur dasar akan tetap berlaku setelah 2020, sementara elemen individu akan ditingkatkan seiring dengan kesepakatan yang dicapai oleh para pemimpin Uni Eropa pada bulan Oktober 2014: Nilai patokan akan diperbarui untuk menangkap kemajuan teknologi di berbagai sektor. Nilai sekarang ditentukan berdasarkan data dari tahun 2007-2008 dan tidak akan mencerminkan keadaan teknologi setelah tahun 2020. Data produksi - sistem akan lebih fleksibel dengan memperhitungkan peningkatan produksi atau penurunan dan menyesuaikan jumlah alokasi bebas secara lebih baik. Jumlah tunjangan gratis tertentu akan disisihkan untuk instalasi baru dan terus bertambah. Kebocoran karbon saat ini, di luar 2020 semua sektor industri utama akan dianggap berisiko mengalami kebocoran karbon. Biaya karbon tidak langsung 2 Negara-negara Anggota didorong untuk menggunakan pendapatan lelang untuk memberikan kompensasi sesuai dengan peraturan bantuan negara. 6. Bagaimana EU ETS mendukung inovasi rendah karbon Dana Inovasi akan dibentuk untuk mendukung investasi pertama dalam energi terbarukan, penangkapan dan penyimpanan karbon (CCS) dan inovasi rendah karbon dalam industri intensif energi. Sekitar 400 juta tunjangan yang mencapai sekitar EUR 10 miliar saat dijual akan dipesan mulai 2021 dan seterusnya untuk tujuan ini. Selain itu, 50 juta lebih lanjut dari tunjangan yang tidak dapat dialokasikan3 dari 2013-2020 akan disisihkan agar Dana Inovasi dapat dimulai sebelum tahun 2021 dan mencakup proyek untuk mendukung teknologi terobosan di industri4. Dana Inovasi dibangun berdasarkan keberhasilan program pendanaan yang ada untuk mendukung inovasi karbon rendah dengan menggunakan dana dari 300 juta tunjangan selama 2013-2020 (yang disebut NER 300). 7. Apa tujuan Dana Modernisasi Tujuan Dana Modernisasi adalah untuk mendukung Negara-negara Anggota berpenghasilan rendah dalam memenuhi kebutuhan investasi yang tinggi terkait dengan efisiensi energi dan modernisasi sistem energi mereka. Antara 2021 dan 2030, 2 dari tunjangan tersebut, sekitar 310 juta tunjangan secara keseluruhan, akan disisihkan untuk mendirikan dana tersebut. Semua Negara Anggota akan memberikan kontribusi terhadap dana tersebut, yang akan menguntungkan 10 Negara Anggota dengan PDB per kapita kurang dari 60 dari rata-rata UE (pada tahun 2013). Negara-negara yang memenuhi syarat untuk menerima dukungan adalah: Bulgaria, Kroasia, Republik Cheska, Estonia, Hungaria, Latvia, Lituania, Polandia, Rumania dan Slovakia. Petunjuk ETS harus menetapkan struktur tata kelola untuk Dana Modernisasi yang melibatkan Negara-negara Anggota, European Investment Bank, dan Komisi. 8. Bagaimana revisi EU ETS mempengaruhi Reserve Stabilitas Pasar Kesepakatan baru-baru ini mengenai Stabilitas Stabilitas Pasar (MSR) memungkinkan tunjangan yang tidak dapat dialokasikan untuk ditransfer ke MSR pada tahun 2020. Menurut peraturan ini, analis memperkirakan bahwa sekitar 550 sampai 700 juta tunjangan mungkin Ditransfer ke MSR pada tahun 2020. Setelah sebuah permintaan oleh Parlemen dan Dewan untuk mempertimbangkan penggunaan tunjangan yang tidak dapat dialokasikan setelah tahun 2020, Komisi mengusulkan untuk menggunakan 250 juta tunjangan yang tidak dapat dialokasikan dari tahun 2013-2020 untuk membentuk cadangan instalasi baru dan yang sedang tumbuh. 9. Apakah ada konsultasi publik mengenai usulan ini, Negara-negara Anggota, perwakilan industri, LSM, lembaga penelitian dan akademis, serikat pekerja dan warga negara dilibatkan dalam berbagai tahap dalam pengembangan proposal ini. Konsultasi pemangku kepentingan ekstensif dilakukan pada tahun 2014 mengenai berbagai aspek teknis EU ETS. Komisi menerima lebih dari 500 kontribusi yang telah diperhitungkan dalam menyiapkan proposal ini. Setelah konsultasi ini dan analisis target kebijakan iklim Uni Eropa untuk tahun 2030, Komisi melakukan penilaian dampak revisi EU ETS yang juga dipublikasikan todaysee (Dokumentasi). Proposal legislatif telah diajukan ke Parlemen Eropa dan Dewan untuk diadopsi serta Komite Ekonomi dan Sosial dan Komite Daerah untuk pendapat. Komisi akan bekerja sama dengan lembaga-lembaga ini untuk melihat undang-undang ini melalui. Warga negara dan pemangku kepentingan dapat memberikan pandangan mereka mengenai proposal ini selama delapan minggu ke depan. Ini akan dimasukkan ke dalam debat legislatif dan dipresentasikan ke Parlemen Eropa dan Dewan. Untuk keterangan lebih lanjut, silakan merujuk ke pertanyaan tambahan di situs DG Clima. Lihat juga infographic di Attachment to fact sheet ini. 1 Faktor koreksi lintas sektor mengurangi alokasi bebas di semua sektor jika klaim untuk tunjangan gratis lebih tinggi dari jumlah yang tersedia. 2 Biaya karbon tidak langsung timbul terutama untuk industri padat energi karena biaya karbon diteruskan kepada mereka dalam harga listrik. 3 Tunjangan yang tidak dapat dialokasikan adalah dana yang awalnya dialokasikan untuk alokasi gratis namun tidak dialokasikan karena penutupan perusahaan atau pengurangan produksi. 4 Misalnya penangkapan karbon dan demonstrasi menggunakan proyekMenunjukkan di EU ETS Pengantar Sistem Perdagangan Emisi UE termasuk bagaimana sistem cap-and-trade bekerja, bagaimana tunjangan gratis dialokasikan, rincian tentang kepatuhan, pencantuman penerbangan di Sistem dan Skema opt-out Inggris untuk penghasil emisi kecil dan rumah sakit. EU ETS adalah sistem perdagangan gas rumah kaca multi-negara multi-sektor terbesar di dunia. Ini mencakup lebih dari 11.000 pembangkit listrik dan pabrik industri di seluruh UE dengan sekitar 1.000 di antaranya di Inggris. Ini termasuk pembangkit listrik, kilang minyak, platform lepas pantai dan industri yang memproduksi besi dan baja, semen dan kapur, kertas, kaca, keramik dan bahan kimia. Organisasi lain, termasuk universitas dan rumah sakit, juga dapat ditutupi oleh EU ETS tergantung pada kapasitas pembakaran peralatan di lokasi mereka. Operator penerbangan yang terbang ke atau dari bandara Eropa juga dilindungi oleh EU ETS. Panduan ini menjelaskan sistem cap dan perdagangan Uni Eropa, termasuk rincian fase penyampaian Sistem. Ini menyediakan informasi tentang aplikasi UKs untuk tunjangan gratis Tahap III melalui National Implementation Measures (NIMs), serta rincian kepatuhan dan verifikasi. Ada juga bagian tentang peraturan emisi untuk industri penerbangan dan Skema Penyisihan Emisi Kecil dan Rumah Sakit Inggris. Cap dan perdagangan EU ETS bekerja berdasarkan cap dan trade, jadi ada batas atau batasan yang ditetapkan pada total emisi gas rumah kaca yang diizinkan oleh semua peserta yang tercakup dalam Sistem dan tutup ini diubah menjadi tunjangan emisi yang dapat diperdagangkan. Tunjangan emisi tradabel dialokasikan ke peserta di pasar di EU ETS ini dilakukan melalui campuran alokasi dan pelelangan bebas. Satu tunjangan memberi pemegang hak untuk memancarkan satu ton CO2 (atau yang setara). Peserta yang tercakup dalam EU ETS harus memantau dan melaporkan emisi mereka setiap tahun dan menyerahkan cukup tunjangan emisi untuk menutupi emisi tahunan mereka. Peserta yang cenderung mengeluarkan lebih dari alokasi mereka memiliki pilihan antara mengambil tindakan untuk mengurangi emisi mereka atau membeli tunjangan tambahan baik dari pasar sekunder mis. Perusahaan yang memegang tunjangan yang tidak mereka butuhkan atau dari Negara Anggota mengadakan pelelangan. Informasi lebih lanjut tersedia di EU ETS. Halaman web pasar karbon Tidak masalah di mana (dalam hal lokasi fisik) pengurangan emisi dilakukan karena penghematan emisi memiliki dampak lingkungan yang sama di manapun mereka berada. Alasan di balik perdagangan emisi adalah bahwa hal itu memungkinkan pengurangan emisi terjadi dimana biaya pengurangannya paling rendah, mengurangi keseluruhan biaya untuk mengatasi perubahan iklim. Cara kerja perdagangan: contoh hipotetis yang disederhanakan Secara historis pemasangan A dan pemasangan B keduanya menghasilkan 210 ton CO2 per tahun. Berdasarkan proses alokasi UE masing-masing diberi 200 tunjangan. Pada akhir tahun pertama, emisi 180Mt dicatat untuk pemasangan A karena memasang boiler hemat energi pada awal tahun yang mengurangi emisi CO2-nya. Sekarang bebas menjual tunjangan surplus di pasar karbon. Instalasi B namun mengeluarkan 220Mt CO2 karena perlu meningkatkan kapasitas produksinya dan harganya terlalu mahal untuk diinvestasikan dalam teknologi efisiensi energi. Oleh karena itu, instalasi B membeli tunjangan dari pasar, yang telah tersedia karena pemasangan A telah mampu menjual tunjangan tambahannya. Efek bersihnya adalah bahwa investasi pengurangan karbon terjadi di tempat yang paling murah, dan emisi CO2 terbatas pada 400 tunjangan yang dikeluarkan untuk kedua instalasi tersebut. Tahap pengiriman Sistem Perdagangan Emisi Sampai saat ini, tiga tahap operasional ETS Uni Eropa telah disampaikan atau disepakati meskipun diperkirakan skema akan berlanjut melampaui 2020: Tahap I (1 Januari 2005 sampai 31 Desember 2007) Fase ini selesai. Rincian lebih lanjut di sekitar fase ini dapat dilihat di versi Arsip Nasional DECC: EU ETS Phase I halaman web. Tahap II (1 Januari 2008 sampai 31 Desember 2012) Tahap II dari EU ETS bertepatan dengan Periode Komitmen Kyoto yang pertama. Tahap II dibangun berdasarkan pelajaran dari tahap pertama, dan diperluas untuk meliput emisi CO2 dari kaca, wol mineral, gypsum, pembakaran dari produksi minyak dan gas lepas pantai, petrokimia, karbon hitam dan baja terpadu. Pada Tahap II, masing-masing Negara Anggota menyusun Rencana Alokasi Nasional (RAN), yang menetapkan jumlah total tunjangan yang harus dikeluarkan oleh Negara Anggota selama fase tersebut dan bagaimana hal tersebut mengusulkan untuk mendistribusikan tunjangan tersebut kepada masing-masing operator yang dicakup oleh Sistem. Setiap NAP harus disetujui oleh Komisi Eropa. WTP Tahap II yang disetujui Inggris diterbitkan pada tanggal 16 Maret 2007. Perincian lebih lanjut di sekitar fase ini dapat dilihat di versi Arsip Nasional versi Arsip Nasional dari halaman web DECC: EU ETS Phase 2. Tahap III (1 Januari 2013 sampai 31 Desember 2020) Fase EU ETS saat ini dibangun berdasarkan dua fase sebelumnya dan direvisi secara signifikan untuk memberikan kontribusi lebih besar untuk mengatasi perubahan iklim termasuk: tutup keseluruhan Uni Eropa mengenai jumlah tunjangan yang tersedia Dan peningkatan pelelangan tunjangan tersebut, serta skema Inggris untuk menurunkan biaya kepatuhan bagi penghasil emisi kecil dan rumah sakit. Tutup Uni Eropa akan mengurangi jumlah tunjangan yang tersedia sebesar 1,74 setiap tahun, memberikan pengurangan keseluruhan 21 di bawah emisi terverifikasi tahun 2005 pada tahun 2020. Lintasan akan dihitung dari titik keberangkatan titik tengah Tahap II dan akan menggambarkan penurunan Tutup dari tahun 2013 dan seterusnya. Alokasi tunjangan gratis Semua sektor yang tercakup dalam EU ETS. Dengan pengecualian sebagian besar sektor tenaga UE, disediakan alokasi tunjangan gratis untuk membantu transisi mereka menuju ekonomi rendah karbon. Selain itu, sektor industri memiliki risiko persaingan yang signifikan dari negara-negara yang tidak memiliki biaya karbon serupa (lihat bagian tentang kebocoran karbon di EU ETS untuk informasi lebih lanjut) berhak menerima tunjangan yang lebih tinggi secara gratis. Pada tahun 2011, Negara-negara Anggota diminta untuk menyerahkan kepada Komisi Eropa daftar jumlah awal tunjangan gratis yang akan dikeluarkan untuk setiap instalasi industri pada Tahap III, yang disebut sebagai Tindakan Implementasi Nasional atau NIM. Inggris mengirimkan NIM-nya ke Komisi Eropa pada tanggal 12 Desember 2011, dan kemudian mengirimkan NIM yang telah diubah pada bulan April 2012. Pada tanggal 5 September 2013, Komisi Eropa mengumumkan selesainya proses untuk memeriksa dan mengkonfirmasi alokasi bebas tunjangan EU ETS di setiap Negara Anggota NIM. Ini juga mengumumkan bahwa faktor koreksi lintas sektoral diperlukan untuk memastikan bahwa alokasi bebas di seluruh UE tetap berada dalam batas yang ditetapkan dalam Petunjuk ETS. Faktor tersebut mengurangi alokasi awal untuk setiap instalasi ETS Uni Eropa sebesar 5,73 pada tahun 2013, meningkat menjadi 17,56 pada tahun 2020. Rata-rata pengurangan alokasi 11,58 pada periode 2013-2020. Daftar pertama di bawah ini menunjukkan angka alokasi gratis pada Tahap III untuk setiap instalasi industri di Inggris, sebagaimana disetujui oleh Komisi Eropa pada tanggal 18 Desember 2013. Daftar kedua menunjukkan angka alokasi bebas yang telah diperbarui untuk Tahap III, dengan mempertimbangkan setiap perubahan pada alokasi Menyetujui NIM Inggris untuk instalasi individual per 30 April 2014, misalnya karena penghentian sebagian, pengurangan kapasitas yang signifikan atau di mana instalasi memasuki EU ETS (pendatang baru). Daftar ini akan diperbarui setiap tahun untuk mempertimbangkan perubahan alokasi lebih lanjut selama fase berjalan. MS Excel Spreadsheet 73.2KB File ini mungkin tidak cocok untuk pengguna teknologi bantu. Meminta format yang mudah diakses Jika Anda menggunakan teknologi bantu (misalnya pembaca layar) dan memerlukan versi dokumen ini dalam format yang lebih mudah diakses, silakan email correspondencedecc. gsi. gov. uk. Tolong beritahu kami format apa yang anda butuhkan. Ini akan membantu kita jika Anda mengatakan teknologi bantu apa yang Anda gunakan. PDF. 635KB. 14 halaman File ini mungkin tidak cocok untuk pengguna teknologi bantu. Meminta format yang mudah diakses Jika Anda menggunakan teknologi bantu (misalnya pembaca layar) dan memerlukan versi dokumen ini dalam format yang lebih mudah diakses, silakan email correspondencedecc. gsi. gov. uk. Tolong beritahu kami format apa yang anda butuhkan. Ini akan membantu kita jika Anda mengatakan teknologi bantu apa yang Anda gunakan. PDF. 727KB. 31 halaman Berkas ini mungkin tidak cocok untuk pengguna teknologi bantu. Meminta format yang mudah diakses Jika Anda menggunakan teknologi bantu (misalnya pembaca layar) dan memerlukan versi dokumen ini dalam format yang lebih mudah diakses, silakan email correspondencedecc. gsi. gov. uk. Tolong beritahu kami format apa yang anda butuhkan. Ini akan membantu kita jika Anda mengatakan teknologi bantu apa yang Anda gunakan. PDF. 397KB. 32 halaman Berkas ini mungkin tidak cocok untuk pengguna teknologi bantu. Meminta format yang mudah diakses Jika Anda menggunakan teknologi bantu (misalnya pembaca layar) dan memerlukan versi dokumen ini dalam format yang lebih mudah diakses, silakan email correspondencedecc. gsi. gov. uk. Tolong beritahu kami format apa yang anda butuhkan. Ini akan membantu kita jika Anda mengatakan teknologi bantu apa yang Anda gunakan. Kebocoran karbon dan ETS EU Bahaya Karbon adalah istilah yang digunakan untuk menggambarkan prospek kenaikan emisi gas rumah kaca global ketika sebuah perusahaan menggeser produksi atau investasi di luar UE karena - jika tidak ada kesepakatan iklim internasional yang mengikat secara hukum - mereka tidak dapat Untuk meneruskan kenaikan biaya yang disebabkan oleh ETS UE kepada pelanggan mereka tanpa kehilangan pangsa pasar yang signifikan. Cara terbaik untuk mengatasi kebocoran karbon adalah kesepakatan iklim internasional yang mengikat secara hukum. Ini akan menciptakan lapangan bermain tingkat tinggi untuk industri di dalam dan di luar UE sehubungan dengan akuntansi untuk biaya karbon. Sementara itu, EU ETS menyediakan dua mekanisme untuk mengurangi risiko kebocoran karbon. Pertama, sektor yang dianggap berisiko tinggi terhadap kebocoran karbon berhak menerima 100 alokasi tunjangan gratis sampai ke tolok ukur sektor. Ini adalah sumber bantuan yang signifikan, karena sektor yang tidak dianggap berisiko akan menerima 80 dari alokasi mereka secara gratis pada tahun 2013, menurun setiap tahun menjadi 30 di tahun 2020 dengan tujuan untuk mencapai 0 (yaitu pelelangan penuh) pada tahun 2027. Mekanisme kedua memungkinkan Anggota Negara-negara untuk mengkompensasi sektor-sektor yang berisiko tinggi terhadap kebocoran karbon sebagai akibat biaya ETS EU tidak langsung (misalnya melalui kenaikan harga listrik ETS yang terkait dengan Uni Eropa), asalkan skema dirancang dalam kerangka yang ditetapkan oleh Komisi Eropa (lihat bagian tentang karbon tidak langsung Skema kompensasi kebocoran untuk informasi lebih lanjut). Pemerintah Inggris sangat mendukung prinsip alokasi bebas tanpa adanya kesepakatan iklim internasional. Kami percaya bahwa alokasi tunjangan bebas yang proporsional memberi kelegaan pada sektor-sektor yang memiliki risiko kebocoran karbon yang signifikan, tanpa menimbulkan hambatan terhadap perdagangan internasional. Namun kami khawatir bahwa mereka yang paling berisiko mungkin tidak mendapat kompensasi yang memadai di masa depan jika peraturan EU ETS saat ini tidak direformasi untuk Tahap IV ETS UE. Pemerintah Inggris mengakui kekhawatiran industri seputar daya saing dan kebocoran karbon dan berkomitmen untuk memastikan bahwa sektor-sektor yang benar-benar berisiko tinggi terhadap kebocoran karbon terlindungi dari risiko ini. Pada bulan Juni 2014, kami menerbitkan sebuah proyek penelitian yang ditugaskan oleh Departemen Energi dan Perubahan Iklim dan dilakukan oleh Vivid Economics and Ecofys. Yang menyelidiki terjadinya kebocoran karbon sejauh ini dan pendorong utama kebocoran karbon untuk pemilihan sektor industri dan menilai langkah-langkah yang ada untuk mitigasi tersebut. Laporan tersebut memproyeksikan risiko kebocoran karbon untuk 24 sektor industri, dan diproduksi dengan berkonsultasi dengan pemangku kepentingan industri. Analisis pemodelan menunjukkan bahwa dengan tidak adanya langkah-langkah kebijakan yang meringankan (seperti alokasi tunjangan gratis), tidak ada penyisihan untuk pengurangan emisi karbon, dan tidak ada peningkatan peraturan karbon di luar Uni Eropa, sejumlah sektor berisiko mengalami kebocoran. Dengan asumsi ini, analisis pemodelan menunjukkan tingkat kebocoran karbon yang lebih tinggi daripada yang diperkirakan terjadi pada kenyataan. Pandangan yang diungkapkan dalam laporan tersebut adalah pendapat para penulisnya, dan tidak mewakili posisi resmi pemerintah Inggris. Laporan akhir, studi kasus dan peer review terkait tersedia: Prospek kebocoran karbon pada Tahap III ETS UE dan di luar Penilaian status kebocoran karbon untuk alokasi tunjangan bebas Sektor yang berisiko mengalami kebocoran karbon dinilai berdasarkan seperangkat kriteria dan Ambang batas yang tercantum dalam EU ETS Directive. Daftar sektor yang dianggap beresiko kebocoran untuk periode 2013-2014 disepakati melalui prosedur komuntologi UE pada bulan Desember 2009. dengan tambahan daftar yang dibuat dalam Keputusan Komisi Eropa berikutnya. Petunjuk EU ETS memungkinkan dilakukannya peninjauan terhadap sektor-sektor yang berisiko setiap lima tahun, dengan kemungkinan menambahkan sektor ke dalam daftar secara tahunan, ad hoc. Pada tanggal 5 Mei 2014, Komisi Eropa menerbitkan daftar draft sektor untuk periode 2015-19. Berdasarkan kriteria kuantitatif dan kualitatif yang ditetapkan dalam Petunjuk ETS. Rancangan daftar kebocoran karbon akan dipresentasikan ke Komite Perubahan Iklim UE untuk pemungutan suara segera, setelah itu harus dikirim ke Parlemen Eropa dan Dewan selama tiga bulan diperiksa sebelum diadopsi. Pada tanggal 31 Agustus 2013, Inggris menanggapi konsultasi Komisi Eropa mengenai metodologi penentuan daftar kebocoran karbon untuk 2015-19. Inggris menanggapi konsultasi Komisi Eropa mengenai asumsi yang akan digunakan untuk daftar kebocoran karbon ETS 2015-19 EU (PDF 163KB 12 halaman) Skema kompensasi kebocoran karbon tidak langsung Dalam Pernyataan Gugur 2011, Kanselir mengumumkan bahwa pemerintah bermaksud untuk menerapkan Langkah-langkah untuk mengurangi dampak kebijakan terhadap biaya listrik untuk industri yang paling padat energi, dimulai pada tahun 2013 dan bernilai sekitar 250 juta selama periode Review Pengeluaran. Sebagai bagian dari hal ini, pemerintah telah berkomitmen untuk mengkompensasi bisnis yang paling padat energi untuk membantu mengimbangi biaya tidak langsung dari Harga Karbon dan ETS Uni Eropa. Tunduk pada pedoman bantuan negara. Dalam Anggaran 2014, Kanselir mengumumkan bahwa kompensasi atas biaya tidak langsung dari Lantai Harga Karbon dan ETS UE akan diperpanjang sampai 2019-20. Komisi Eropa mengadopsi pedoman bantuan negara yang telah direvisi mengenai kompensasi atas biaya tidak langsung dari ETS UE pada bulan Juni 2012. Panduan ini mencantumkan sektor-sektor yang dianggap terkena risiko kebocoran karbon yang signifikan karena biaya emisi tidak langsung, dan memberikan rincian maksimum Tingkat kompensasi yang bisa diberikan kepada mereka. Setiap skema kompensasi Negara Anggota harus dirancang dalam kerangka yang ditetapkan oleh Komisi Eropa. Pada bulan Oktober 2012, DECC dan BIS meluncurkan konsultasi skema kompensasi industri energi intensif. Yang menetapkan proposal kami untuk kelayakan dan desain paket kompensasi. Konsultasi tersebut, yang ditutup pada bulan Desember 2012, memberi kesempatan bagi semua pihak yang tertarik dengan paket tersebut untuk mengomentari proposal tersebut, membantu kami memastikan bahwa kompensasi ditargetkan pada perusahaan-perusahaan yang paling berisiko terkena kebocoran karbon sebagai akibat energi dan iklim. Ubah kebijakan Setelah mempertimbangkan secara rinci tanggapan dan pembersihan bantuan negara untuk paket kompensasi ETS UE, pada bulan Mei 2013 kami menerbitkan tanggapan pemerintah terhadap konsultasi dan rancangan skema kompensasi akhir untuk EU ETS. Inggris mulai melakukan pembayaran sehubungan dengan biaya tidak langsung ETS UE pada tahun 2013. Untuk kompensasi Harga Karbon, yang tetap tunduk pada persetujuan bantuan negara dari Komisi Eropa, kami berharap dapat menerbitkan panduan di kemudian hari pada musim panas dan mulai melakukan pembayaran segera setelahnya. Cadangan Peserta Baru Cadangan Peserta Baru (NER) adalah penyisihan UE, yang disediakan untuk operator baru atau operator lama yang memiliki kapasitas peningkatan yang signifikan. Regulator ETS EU UKS bertanggung jawab untuk mengelola dan menilai semua aplikasi APM. Operator yang memulai aktivitas peserta baru harus menyerahkan aplikasi APL ke regulator mereka dalam waktu 12 bulan setelah memulai operasi normal dari aktivitas baru atau yang diperpanjang. Informasi lebih lanjut tentang penerapan pada Fase III NER tersedia di Badan Lingkungan Hidup: EU ETS New Entrant Reserve (NER) halaman web. Informasi lebih lanjut tentang tunjangan dapat ditemukan di EU ETS. Tunjangan halaman Sesuai dengan EU ETS Peraturan Sistem Perdagangan Emisi Gas Rumah Kaca 2012 mewajibkan semua operator yang melakukan kegiatan yang tercakup oleh EU ETS untuk mengajukan izin emisi gas rumah kaca - yang berlaku, lisensi untuk mengoperasikan dan memancarkan gas rumah kaca yang tercakup dalam EU ETS . Kegiatan yang tercakup dalam EU ETS adalah kegiatan yang tercantum dalam Lampiran I pada EU ETS Directive. Regulator ETS UE bertanggung jawab untuk menegakkan kepatuhan terhadap Peraturan ETS UE, termasuk fungsi operasional seperti pemberian dan pemeliharaan izin dan rencana emisi (untuk penerbangan), pemantauan dan pelaporan (termasuk rencana pemantauan), menilai laporan emisi yang terverifikasi (dan ton-kilometer Laporan), menilai aplikasi ke APM. Menentukan pengurangan alokasi sebagai hasil dari perubahan kapasitas atau penghentian kegiatan, pertukaran informasi dengan UKAS pada kegiatan verifier. Untuk tujuan menghitung hukuman perdata, DECC menentukan nilai harga karbon ETS UE yang digunakan oleh regulator. Penentuan ini diterbitkan pada bulan November setiap tahun: Pada tanggal 7 Agustus 2013, kami meluncurkan sebuah konsultasi mengenai sejumlah amandemen teknis terhadap Peraturan Skim Perdagangan Emisi Gas Rumah Kaca 2012 sehingga dapat menyederhanakan dan menyelaraskan sanksi UE UE dalam transisi ke Tahap III, memperbaiki Kejelasan dan mengurangi beban bisnis. Konsultasi ditutup pada tanggal 19 September 2013. Untuk informasi lebih lanjut tentang bagaimana mematuhi EU ETS, kunjungi: Monitoring, pelaporan, verifikasi dan akreditasi Operator EU ETS harus mengusulkan sebuah rencana pemantauan saat mengajukan izin emisi gas rumah kaca (atau rencana emisi untuk Operator penerbangan). Rencana pemantauan tersebut memberikan informasi bagaimana emisi operator EU ETS akan diukur dan dilaporkan. Rencana pemantauan harus dikembangkan sesuai dengan Peraturan Pemantauan dan Pelaporan Komisi Eropa dan disetujui oleh Regulator ETS UE. Tahun pelaporan berlangsung dari 1 Januari sampai 31 Desember setiap tahunnya. EU ETS mensyaratkan semua laporan emisi tahunan dan pemantauan untuk diverifikasi oleh verifier independen sesuai dengan Peraturan Akreditasi dan Verifikasi. Verifier akan memeriksa inkonsistensi dalam pemantauan dengan rencana yang disetujui dan apakah data dalam laporan emisi lengkap dan dapat diandalkan. Panduan Komisi Eropa untuk Regulasi Akreditasi dan Verifikasi bertujuan untuk membantu operator semua instalasi stasioner, operator penerbangan, badan verifikasi dan regulator melakukan verifikasi secara konsisten di seluruh UE. Ini memberikan informasi dan saran praktis mengenai proses dan persyaratan untuk verifikasi tahunan yang dipersyaratkan oleh Petunjuk ETS UE, Peraturan Pemantauan dan Pelaporan Komisi Eropa dan Izin Gas Rumah Kaca untuk merencanakan rencana rencana sepanjang tahun. Menemukan verifier EU ETS yang terakreditasi di Inggris Peraturan Akreditasi dan Verifikasi (Peraturan Komisi 6002012EU) mewajibkan pengukur EU ETS untuk memenuhi persyaratan tertentu. In the UK, these requirements are demonstrated by being accredited. The UK Accreditation Service (UKAS ) is responsible for the accreditation and supervision of verifiers in the UK and for maintaining a list of those verifiers. The list of UKAS accredited verifiers for Phase III, including aviation, of the EU Emissions Trading System indicates the scope of a particular verifiers accreditation, for example in relation to particular sectors. The UKAS list does not include verifiers accredited by other national accreditation bodies and under Phase III rules there is no registration or acceptance procedure for non-UK verifiers. All verifiers are required to demonstrate that they are either accredited (or certified) in accordance with the Accreditation and Verification Regulation. Operators are responsible for ensuring that their verifier is accredited for the relevant scope of work. Details of a verifiers scope of accreditation can be found on the verifiers accreditation certificate. If you are an EU ETS verification body working in the UK for the first time, you will need an ETSWAP account to view your clients reports and to submit your verification opinion statement, as well as a Registry Account. To open a verifier ETSWAP account, send an email to EThelpenvironment-agency. gov. uk. It is advisable to do this when you have a client in the UK. Include the following information in your email: Name of verifier organisation Country Accreditation identification number A copy of your accreditation certificate Full name and email address of the main point of contact (this user will have the responsibility for managing other users for this verifier) Once the ETSWAP administrator has approved your request for access, ETSWAP will send you an email with the login details for your individual user account. To apply for a verifier Registry account, email etregistryhelpenvironment-agency. gov. uk for an application pack. Further guidance Using UK greenhouse gas inventory data in EU ETS monitoring and reporting: the country-specific factor list The European Commissions Regulation on Monitoring and Reporting allows nationally reported data to be used as default factors in specific circumstances. Carbon emission factors and calorific values from the UK Greenhouse Gas Inventory (AEA-Ricardo, 2015) are available for annual emissions reporting for the EU ETS : MS Excel Spreadsheet. 76.6KB This file may not be suitable for users of assistive technology. Meminta format yang mudah diakses If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email correspondencedecc. gsi. gov. uk. Tolong beritahu kami format apa yang anda butuhkan. Ini akan membantu kita jika Anda mengatakan teknologi bantu apa yang Anda gunakan. The national factors are Tier 2 and Tier 2a emission factors and net calorific values for specific fuels used by particular industries. The data have largely been extracted from the UK Greenhouse Gas Inventory that is presented on an annual basis to the United Nations Framework Convention on Climate Change (UNFCCC ). The Greenhouse Gas Inventory is developed independently to the EU Emissions Trading System. This data means the data referred to in Article 31(1) of the Monitoring and Reporting Regulation. The factors in these tables should only be used in accordance with the requirements in an installations approved monitoring plan, which is part of the Greenhouse Gas permit. Tables for previous years are available as follows: EU ETS non-compliance The EU ETS Directive requires Member States to put in place a system of penalties which is effective, proportionate and dissuasive but the nature of the penalties is largely left to Member State discretion (with the exception of the penalty for failure to surrender sufficient allowances in certain circumstances). The Greenhouse Gas Emissions Trading System Regulations 2012 set out the civil penalties to which a person is liable if they do not comply with the EU ETS. DECC has produced the guidance below for the offshore oil and gas industry detailing the Departments approach to enforcement and sanctions. The Regulations provide for the right of appeal against decisions of an EU ETS Regulator. In England and Wales appeals for both operators of stationary installations and aircraft operators, as well as offshore installations, are heard by the First-tier Tribunal. Appeals in Northern Ireland are heard and determined by the Planning Appeals Commission (PAC). In Scotland, the Directorate for Planning and Environmental Appeals (DPEA) in the Scottish Government hears and determines appeals on behalf of the Scottish Ministers. Different arrangements apply to appeals brought by aviation operators against a penalty notice served under the Aviation Greenhouse Gas Emissions Trading Scheme Regulations 2010 for the 2012 scheme year. The relevant rules under the 2010 Regulations continue to apply in relation to any appeal brought against any decision made or notice served under the 2010 Regulations. These provide that the appeal body is the Secretary of State or an independent person appointed by the Secretary of State. Appeal Determinations 2012 scheme year: Six appeals determinations have been made under these Regulations: Aviation in the EU ETS The EU Emissions Trading System requires aircraft operators to monitor and report emissions of CO2 and surrender the equivalent number of allowances. The scheme is designed to be a cost-effective means of tackling the CO2 emissions from aviation, enabling the aviation industry to grow sustainably whilst delivering emission reductions. The scheme applies to all flights between airports in the European Economic Area. Details of the underpinning EU legislation and related detailed FAQs can be found on the European Commission: Reducing emissions from aviation web page . We are consulting on implementation of the revised Aviation ETS in the UK. The consultation seeks comments on the proposed amendments to UK Regulations and the consultation-stage Impact Assessment. You can view the consultation and accompanying documents on the EU Emissions Trading System aviation consultation webpage . The key changes are: An Intra-European Economic Area (EEA) scope for the Aviation ETS from 1 January 2013 until 31 December 2016 A deferral of compliance deadlines for 2013 emissions until March and April 2015 An exemption for non-commercial operators emitting less than 1,000 tonnes of CO2 per year until 2020 Simplified procedures for operators emitting less than 25,000 tonnes of CO2 per year The number of free allowances issued and allowances auctioned are reduced in proportion to the reduction in scope. We welcome views from any organisation or individual, and the consultation will be of particular interest to aircraft operators, aerodrome operators, verifiers, other participants in the EU ETS and environmental groups. Regulation of aircraft operators emissions Each aircraft operator is administered by a single member state. The European Commission produces an annual list showing which operators are administered by which member state . There are three Regulators in the UK that regulate Aviation ETS activities, depending on the location of an operators registered office or where their highest proportion of emissions occur: the Environment Agency (for operators in England) the Scottish Environmental Protection Agency and Natural Resources Wales . You can find out more about what operators need to do to comply with the scheme on the EU ETS. operators and activities affected web page . Auctioning Free allocation to aircraft operators The European Commission enacted legislation in April 2014 changing the scope of EUETS with regards to international aviation emissions (Regulation (EU ) No 4212014 amending Directive 200387EC ). As a result of the change in scope of Aviation EU ETS. the UK is obligated to recalculate the allocation of free allowances due to eligible aircraft operators. This recalculation has been done in accordance with the Commission guidance. The table includes all operators who were previously due free allowances and indicates their new free allowance allocation under the reduced scope. Operators who ceased operations have been removed from this list. Operators who are now exempt under the new non-commercial de minimis (under 1,000tCO2 per annum calculated on the basis of full scope) still appear in this table. However owing to their exempt status these operators are not due free allowances and as such their Aircraft Operator Holding Account (AOHA) will be marked as excluded in the registry meaning that no transactions can be carried out and no free allowances will be deposited. If you believe you are no longer due any allowances as a result of the changes or you wish to seek further clarification as to your new free allowance allocation please contact the Environment Agency aviation helpdesk ETAviationHelpenvironment-agency. gov. uk . Historic information Please visit the DECC EU ETS legislation page to see UK legislation and EU Regulations . Please visit the National Archives version of the Aviation in the EU Emissions Trading System web pages to see information relating to aviationaviation appeals previously available on the DECC website. Small Emitter and Hospital Opt-out Scheme The UKs Small Emitter and Hospital Opt-out Scheme allows eligible installations to be excluded from Phase 3 (2013 to 2020) of the EU ETS. The scheme has been approved by the European Commission. Article 27 of the EU ETS Directive enables small emitters and hospitals to be excluded from the EU ETS. with the primary aim of reducing the administrative burdens on these installations. This acknowledges that the administrative costs faced by smaller emitters under the EU ETS are disproportionately high per tonne of CO2, in comparison to the costs for large emitting installations. The Directive requires that excluded installations are subject to a domestic scheme that will deliver an equivalent contribution to emission reductions as the EU ETS . The UKs opt-out scheme was designed in consultation with industry and aims to offer a simple, deregulatory alternative to the EU ETS whilst maintaining the incentives for emission reductions. We estimate that the scheme will offer savings of up to 39 million to industry over Phase III. The opt-out scheme offers deregulatory savings through: the replacement of a requirement to surrender allowances with an emissions reduction target simplified monitoring, reporting and verification requirements (MRV), including the removal of the requirement for third party verification no requirement to hold an active registry account less burdensome rules for target adjustment following an 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 2015. The consultations referred to in the Frequently asked questions document are now closed. The UKs Small Emitter and Hospital Opt-out Scheme (document updated on 25 March 2013 following agreement of the EU Registries Regulation 2012) Participants in the opt-out scheme Operators of installations that are excluded from the EU ETS and participating in the Opt-out Scheme should refer to the document European Union Emissions Trading System (EU ETS ) Phase III: Guidance for installations How to comply with the EU ETS and Small Emitter and Hospital Opt-out Scheme . The application period for the opt-out scheme ran from 23 May to 18 July 2012. 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 2012, can be viewed on the National Archives website. The EU Emissions Trading System (EU ETS) 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 cost-effectively. It is the worlds 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 amp industrial plants) and airlines operating between these countries covers around 45 of the EUs greenhouse gas emissions. 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 (2013-2020) 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 2016 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 (2013) (see 2015 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 worlds 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 Carbon market reports Revision of the EU ETS for phase 3 Implementation Legislative History of Directive 200387EC Work prior to the Commission proposal Commission proposal of October 2001 Commissions reaction to reading of the proposal in Council and Parliament (including Councils common position) Open all questions 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 EUs 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 EUs 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 2012. How does emissions trading work 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. Companies that keep their emissions below the level of their allowances can sell their excess allowances. 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 2012. 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 2013. While preparatory work will be initiated immediately, the applicable rules will not change until January 2013 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 Commissions 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 (2013-2020). 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 Commissions 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 2013. 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 GDPcapita 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 Commissions 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 Commissions 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 JICDM 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 2008-2012. New sectors, new entrants in the periods 2013-2020 and 2008-2012 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 (2008-2012) 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 2013, 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 2013 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 (2013 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 dont take account of aviation, which will be added in 2012, 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 2010. 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 2C 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 2013 to 2020, as opposed to five years for the second phase from 2008 to 2012. 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 2013 will correspond better to expected emissions trends over the period. What are the tentative annual ETS cap figures for the period 2013 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 2012), and the Commissions 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 Yes. 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 2013 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 2010, 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 2013 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 2013 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 2013, with Member States agreeing to start at 20 auctioning in 2013, 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 2010, 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 2010, 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 States 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 2013 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 2013, 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 2012, 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 2013, 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 2008-2012, while a top-up is foreseen for operators with the lowest sum of free allocation and allowed use of credits in the 2008-2012 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 2013-2020. 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 Protocols 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 2008-2012 will be accepted in the period 2013-2020. Furthermore, from 1 January 2013 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 2013 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 2013 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 Yes. 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 wont 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 2013 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 Yes. 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 2013 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 2011 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 2013 (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 Parliaments 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 2015 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 2013, 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 2012. 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 2010), the harmonised allocation rules (due end 2010) and the two Regulations on monitoring and reporting of emissions and verification of emissions and accreditation of verifiers (due end 2011).