The EU Emission Trading System (EU ETS)

Der Europäische Emissionshandel (EU-ETS) ist seit das zentrale Klimaschutzinstrument der EU. Mit ihm sollen die Treibhausgas-Emissionen der teilnehmenden Energiewirtschaft und der energieintensiven Industrie reduziert werden. Seit nimmt der innereuropäische Luftverkehr teil. Neben Kohlendioxid sind seit .

This drove the carbon price down to zero in CCC, , p. Frankfurt am Main, Germany:

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European Union Carbon Market Glossary European Union Emissions Trading System (EU ETS) is the cornerstone of the European Union's policy to tackle climate change and its key tool for cost-effective reduction of emissions of carbon dioxide (CO2) and other greenhouse gases (GHG) in the power, aviation and industrial sectors.. The EU ETS .

Request an accessible format. There were 94 responses to the consultation from, among others: These changes are intended to: Alleviate the negative impacts of an amendment to the EU ETS Directive, recently agreed by the European Parliament and Council, which stipulates that aviation and stationary operators will not be able to use allowances issued by a Member State in respect of which there are obligations lapsing. This would mean that allowances issued by the UK in could not be used for compliance.

However, bringing forward the compliance deadlines would mean that obligations for compliance would not be lapsing and it would therefore not be necessary to implement a measure which would have negative and disruptive effects on the smooth operation of the carbon market and on EU ETS participants. Your responses We hope that you will respond online here: Bringing forward EU Emissions Trading System compliance deadlines in the UK If you prefer to send your response by post or email, please use the main postal and email address below , and if responding from Northern Ireland, Scotland and Wales, please copy your response to these addresses: Share this page Share on Facebook Share on Twitter.

Is this page useful? Yes this page is useful No this page is not useful Is there anything wrong with this page? You should still include the BACS payment reference on the application form itself. If you do not quote your payment reference number, there may be a delay in processing your payment and application. Installations captured by the EU ETS include power stations, oil refineries, offshore platforms and industries that produce iron and steel, cement and lime, paper, glass, ceramics and chemicals.

Other organisations, including universities and hospitals may be covered by the EU ETS depending on the combustion capacity of equipment at their sites. Aviation operators flying into or from a European airport are also covered. The overall volume of greenhouse gases that can be emitted each year by installations captured by the system is subject to a cap set at EU level. During each trading year within the phase participating installations are required to monitor their emissions and then have these emissions independently verified.

Operators are then required to ensure they have enough allowances to cover their installation's emissions. Installations may receive some allowances from governments for free, however, installations that produce electricity from fossil fuels including combined heat and power installations will not receive any free allowances from onwards.

Installations have the flexibility to buy additional allowances on top of any free allocation, or to sell any surplus allowances generated from reducing their emissions.

Within limits, they can also buy credits from certain types of approved emission-saving projects around the world. Each allowance gives the holder the right to emit one tonne of CO2, the main greenhouse gas, or the equivalent amount of two more powerful greenhouse gases, nitrous oxide N2O and perfluorocarbons PFCs. All permit applications, variations, notifications and submissions of reports are managed through the online greenhouse gas emissions planning, reporting and management tool Emissions Trading System Workflow Automation Program ETSWAP.

Natural Resources Wales is also responsible for responding to technical enquires raised by Welsh participants. Is there anything wrong with this page?

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Managing flood risk What to do before a flood How to prepare your property for flooding What to do during and after a flood Flooding of farms and agricultural land Development and flood risk. It is now free to sell its surplus allowances on the carbon market. Installation B however emitted Mt CO2 because it needed to increase its production capacity and it was too expensive for it to invest in energy efficiency technology.

Therefore, installation B bought allowances from the market, which had been made available because installation A has been able to sell its additional allowances. The net effect is that the investment in carbon reduction occurs in the cheapest place, and CO2 emissions are limited to the allowances issued to both installations.

To date, 3 operational phases of the EU ETS have been delivered or agreed although it is envisaged the scheme will continue beyond This phase is complete. Phase II built on the lessons from the first phase, and was broadened to cover CO2 emissions from glass, mineral wool, gypsum, flaring from offshore oil and gas production, petrochemicals, carbon black and integrated steelworks.

In Phase II, each Member State developed a National Allocation Plan NAP , which set out the total quantity of allowances that the Member State intended to issue during that phase and how it proposed to distribute those allowances to each of its operators covered by the System.

The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: The EU cap will reduce the number of available allowances by 1.

The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from onwards.

All sectors covered by the EU ETS , with the exception of most of the EU power sector, are provided with a free allocation of allowances in order to assist with their transition towards a low carbon economy.

In addition, industrial sectors at significant risk of competition from countries without similar carbon costs see section on carbon leakage in the EU ETS for more information are eligible to receive a higher proportion of allowances for free. It also announced that a cross sectoral correction factor was required to ensure that free allocation across the EU remains within the cap set in the ETS Directive.

The average reduction of allocation is therefore This list will be updated on an annual basis to take into account further changes to allocation over the course of the phase. If you use assistive technology such as a screen reader and need a version of this document in a more accessible format, please email enquiries beis. Please tell us what format you need.

It will help us if you say what assistive technology you use. PDF , KB , 24 pages. MS Excel Spreadsheet , PDF , KB , 32 pages. PDF , KB , 31 pages. PDF , KB , 14 pages. The final details of this data collection will be confirmed before the end of the year.

If the government considers the data collected as part of this exercise to be useful to the design and implementation of a non- EU ETS post- EU exit carbon pricing scheme, the government will also use the data collected for this purpose.

The deadline for operators to provide verified data to their regulator is expected to be on or around 31 May and should be confirmed in September. Over the coming months regulators will be communicating regularly to ensure that operators understand what will be required and enable them to make the necessary preparations.

To note the NIMs collection covers stationary installations only. Aviation operators will not need to participate. Further technical information on the NIMs requirements for UK operators will be circulated by regulators in due course.

Carbon leakage is a term used to describe the prospect of an increase in global greenhouse gas emissions when a company shifts production or investment outside the EU because - in the absence of an legally binding international climate agreement - they are unable to pass on the cost increases induced by the EU ETS to their customers without significant loss of market share. The best way to address carbon leakage would be a legally binding international climate agreement.

This would create a level playing field for industry inside and outside the EU with respect to accounting for the costs of carbon. The second mechanism allows Member States to compensate sectors at significant risk of carbon leakage as a result of indirect EU ETS costs ie through EU ETS -related increases in electricity prices , provided that schemes are designed within the framework set by the European Commission see section on indirect carbon leakage compensation scheme for more information.

The UK government strongly supports the principle of free allocation in the absence of an international climate agreement. We believe that the proportionate free allocation of allowances gives relief to sectors at significant risk of carbon leakage, without raising barriers to international trade. The UK government recognises industry concerns around competitiveness and carbon leakage and is committed to ensuring that sectors genuinely at significant risk of carbon leakage are protected from this risk.

In June , we published a research project commissioned by the Department of Energy and Climate Change and undertaken by Vivid Economics and Ecofys , which investigates the occurrence of carbon leakage so far and the fundamental drivers of carbon leakage for a selection of industrial sectors and assesses the measures in place for its mitigation.

The report models the risk of carbon leakage for 24 industrial sectors, and was produced in consultation with industry stakeholders. Modelling analysis shows that in the absence of any mitigating policy measures such as free allocation of allowances , no allowance for carbon abatement potential, and no increase in carbon regulation outside of the European Union, a number of sectors are at risk of leakage.

Given these assumptions, the modelling analysis shows higher rates of carbon leakage than would be expected to occur in reality. The views expressed in the report are those of its writers, and do not represent an official position of the UK government.

Sectors at risk of carbon leakage are assessed against a set of criteria and thresholds set out in the EU ETS Directive. The list of sectors deemed at risk of leakage for the period were agreed through the EU comitology procedure in December , with additions to the list made in subsequent European Commission Decisions. The EU ETS Directive allows for a review of sectors at risk every five years, with the possibility of adding sectors to the list on annual, ad hoc basis.