2010 til 2015 regjeringens politikk: klimagassutslipp Dette er en kopi av et dokument som uttalt en policy for koalitionsregeringen fra 2010 til 2015 for konservative og liberale demokrater. Den forrige nettadressen til denne siden var gov. uk government policy reduction-the-uk-s-drivhusgass-utslipp-ved-80-by-2050. Nåværende retningslinjer finnes på GOV. UK-policylisten. Klimaendringsloven fra 2008 etablerte verdens første juridisk bindende klimaendringsmål. Vi tar sikte på å redusere utslippene av drivhusgasser i Storbritannia med minst 80 (fra 1990-basen) innen 2050. Vi prøver å oppnå denne reduksjonen gjennom handlinger i inn-og utland. Flytte til en mer energieffektiv, lav-karbonøkonomi vil hjelpe oss med å nå dette målet. Det vil også hjelpe Storbritannia å bli mindre avhengige av importerte fossile brensler og mindre utsatt for høyere energipriser i fremtiden. Innstilling av nasjonal politikk og strategi For å sikre at Storbritannias regjeringens politikk bidrar effektivt til våre mål for reduksjon av drivhusgasser, var: Innstilling av karbonbudsjetter for å begrense mengden klimagasser som Storbritannia kan sende ut over en bestemt tid ved å bruke statistikk over drivhusgassutslipp og Videre bevis, analyse og forskning for å informere energi - og klimapolitikk ved hjelp av EUs utslippsordning (EU ETS) for å levere en betydelig andel av britiske utslippsreduksjoner mellom 2013 og 2020 ved å bruke et sett med verdier for karbon for å sikre prosjekt og politikkvurderinger utgjør deres virkninger for klimaendringer ved hjelp av 2050-kalkulatoren for å la beslutningstakere og offentligheten utforske de ulike alternativene for å oppfylle 2050-utslippsreduserende mål. Redusere etterspørselen etter energi og hjelpe folk og bedrifter til å bruke energi mer effektivt. Vi kan oppnå betydelige reduksjoner i britene utslipp av klimagasser hvis bedrifter, offentlig sektor og husholdninger reduserer etterspørselen etter energi. Var: redusere etterspørselen etter energi med smarte målere og andre energieffektive tiltak for industri, næringsliv og offentlig sektor redusere utslippene ved å øke energieffektiviteten til eiendommene gjennom Green Deal som gir incentiver for offentlige og private organisasjoner til å ta opp mer energi - Effektiv teknologi og praksis gjennom CRC Energieffektivitetsordningen reduserer klimagasser og andre utslipp fra transportreduserende drivhusgassutslipp fra landbruket Investering i lavkulleteknologi Lavkoleteknologi vil gi et viktig bidrag til våre mål for reduksjon av drivhusgasser. Var: Å iverksette tiltak for å øke bruken av lavkulleteknologi og skape en industri for karbonfangst og - lagring som reduserer utslippene fra kraftbransjen og oppfordrer investeringer i lavkoleteknologi ved å reformere Storbritannias elektrisitetsmarked som gir over 200 millioner av midler til innovasjon i lavkulleteknologi fra 2011 til 2015 Offentlig rapportering av karbonutslipp fra næringsliv og offentlig sektor Offentlig rapportering av karbonutslipp bidrar til å oppmuntre organisasjoner til å bli mer energieffektive, og lar oss vurdere fremdriften som blir gjort. Var: Internasjonal handling Bakgrunn I desember 2011 publiserte vi Carbon Plan. som beskriver våre forslag for å oppnå utslippsreduksjonene begått i de første fire karbonbudsjettene. Dette vil hjelpe Storbritannia til å nå sitt 2050 mål. Regninger og forskrifter Klimaendringsloven 2008 fastsetter Storbritannias juridisk bindende mål. Det tar sikte på å: forbedre karbonforvaltningen og bidra til overgangen til en lav-karbonøkonomi i Storbritannia, viser at Storbritannia er forpliktet til å ta sin del av ansvaret for å redusere globale klimagassutslipp ved å utvikle forhandlinger om en internasjonal klimaavtale etter 2012 som arbeidet med klimakommisjonen (CCC) er en ekspert, uavhengig, lovbestemt offentlig myndighet skapt av klimaendringsloven 2008 for å vurdere hvordan Storbritannia best kan oppnå sine utslippsreduktionsmål for 2020 og 2050. Det vurderer også Storbritannias fremgang på å møte de lovbestemte karbonbudsjettene. Tillegg 1: Redusere klimagassutslipp fra landbruket Dette var en støttende detaljside i hoveddokumentet. Landbruk forårsaker 9 av utslippene av drivhusgasser i Storbritannia. Dette består av: Nitrogenoksid (ca. 55), som er produsert ved bruk av syntetisk og organisk gjødselmetan (rundt 36), som er opprettet gjennom fordøyelsesprosesser i husdyr og produksjon og bruk av gjødsel og slurry-karbon dioksyd (rundt 9) fra energi som brukes til drivstoff og oppvarming Hvordan England reduserer utslippene fra landbruket I England er landbrukssektoren vedtatt kostnadseffektiv praksis for å gjøre landbruksvirksomheten mer energieffektiv og bidra til at Storbritannia oppnår en 80 reduksjon i drivhusgassutslipp innen 2050 . Disse praksisene gjør også bedriftsbedrifter mer konkurransedyktige og bærekraftige. For eksempel kan forbedring av et næringsdriftssystem for gårdene ved å bedre samsvar med næringsinngangene til avlinger, redusere utslippene, øke effektiviteten og spare penger. Gjennomgang av arbeidet Vi vil fortsette å jobbe med en rekke interessenter for å utforske funnene av anmeldelsen, dele bredere bevis og forfine vår eksisterende tilnærming. Utdelte administrasjoner Den skotske regjeringen har utviklet nettstedet Farming for a Better Climate, som tilbyr praktiske tiltak som bønder kan bruke for å redusere drivhusgasser. Den walisiske regjeringen opprettet Klimaendringsgruppen for Landbruk for å vurdere hvordan landbruks - og landbruksområder kan redusere klimaendringene og hjelpe folk til å tilpasse seg det. Nord-Irland Miljøverndepartementet (DOE) har utgitt handlingsplanen for GhG-utslippsreduksjon for Nord-Irland. som dekker utslipp fra landbrukssektoren. Tillegg 2: EUs utslippshandelssystem (EU ETS) Dette var en støttende detaljside av hoveddokumentet. EU ETS er det største multi-country, multi-sector drivhusgassutslipps trading system i verden. Det er sentralt for EU som møter det 20 utslippsreduktionsmålet innen 2020. Finn ut mer om hvordan EUs ETS fungerer. EU ETS dekker rundt 11 000 energiintensive industrianlegg i hele Europa, inkludert kraftverk, raffinaderier og store produksjonsanlegg. EU ETS i Storbritannia Det juridiske rammeverket for EU ETS er angitt i: Storbritannia har rundt 1.000 EU ETS-deltakere. Den handlede sektoren, dvs. sektorer som er omfattet av EUs ETS. vil stå for over 50 av utslippsreduksjonene som trengs for å møte britiske mål mellom 2013 og 2020. EUs ETS spiller en viktig rolle for at Storbritannia skal oppfylle sine juridisk bindende karbonbudsjetter, noe som igjen vil hjelpe oss med å redusere utslippene i Storbritannia til minst 35 (under 1990 nivåer) i 2020 og 80 innen 2050. Disse målene er omtalt i klimaendringsloven 2008. 2012 EU-utslippshandelssystem (EU ETS) verifiserte utslippsdata Fra 2. april 2013 ble 2012-installasjonsnivå verifiserte EU ETS-utslippsdata i EU-transaksjonsloggen (EUTL) gjort tilgjengelig for offentligheten. For Storbritannia var de totale verifiserte utslippene i EU-utslippene i 2012 231,2MtCO2 Den gjennomsnittlige årlige fase II-hetten for Storbritannia er 245,6MtCO2 Den faktiske tildelingen til britiske installasjoner som omfattes av EUs ETS i 2012 var 229,0MtCO2. Ledelsen av EUs ETS-dekret setter Storbritannias politikk for EUs ETS. jobber i samarbeid med de delegerte myndighetene og andre offentlige avdelinger. Du kan sende DECC med policyrelaterte søk på eu. etsdecc. gsi. gov. uk Ansvaret for implementering og regulering av EUs ETS er stort sett geografisk basert. Miljøstyrelsen (EA) er Storbritannias administrator og engelsk regulator for EUs utslippshandelssystem. Fra 1. april 2013 er de walisiske regulatorene nå på plass og tar over ansvaret for walisiske installasjoner. Kontaktene er gitt nedenfor. Regulatorisk organisasjon for EU ETS-adresse for henvendelser Ytterligere informasjon om EU ETS Les veiledningene våre for å finne ut mer om EU ETS: Deltakelse i EU ETS forklarer hvordan EU ETS fungerer, kvoter, compliance, luftfart, små emittenter, karbonlekkasje, nye deltakere EU ETS. Karbonmarkeder auksjonering og registre detaljer kan nås her EU ETS. lovgivning og forskningsmedisasjoner regjeringsveiledninger og det juridiske rammebetinget for ordningen kan nås her EUs strategi for utslippshandelssystem (ETS) og reform: Systemets fremtid - viser britiske myndighets visjon for fremtiden for EUs ETS og posisjon på Det europeiske kommisjonens lovforslag om en markedsstabilitetsreserve. Tillegg 3: Offentlig rapportering av karbonutslipp fra næringsliv og offentlig sektor Dette var en støttende detaljerside i hoveddokumentet. Vi gir veiledning for bedrifter og organisasjoner om hvordan man måler og rapporterer utslippene av drivhusgass (GHG). Denne veiledningen er rettet mot alle størrelser av virksomheten, samt offentlige og tredje sektororganisasjoner. Det forklarer hvordan organisasjoner kan måle og rapportere deres drivhusgassutslipp, samt sette mål for å redusere dem. Vi publiserer også årlige utslippskonverteringsfaktorer for drivhusgasser. Organisasjoner kan bruke disse til å hjelpe dem med å beregne CO2-utslipp fra informasjon som bruksregninger, drivstofforbruk og bilkjørelengde. Disse faktorene er tilgjengelige i et nettbasert verktøy: Regjeringsomregningsfaktorer for bedriftsrapportering. Obligatorisk bedriftsrapportering Vi innførte en regulering i juni 2013 som krever at alle børsnoterte selskaper skal rapportere om drivstoffutslippene sine. Denne forskriften vil gi åpenhet rundt hvordan børsnoterte selskaper styrer sine CO2-utslippsinformasjon som investorene har bedt om. Etter konsultasjon om utkastet til forordning bestemte ministerne at reguleringen skulle tre i kraft i oktober 2013 for å tilpasse seg endringer som ble gjort i bedriftsrapporteringsrammen. Tillegg 4: Kullbudsjetter Dette var en støttende detaljside av hoveddokumentet. Et karbonbudsjett legger en begrensning på den totale mengden klimagasser som britene kan slippe ut over en 5-års periode. Storbritannia er det første landet som fastsetter juridisk bindende karbonbudsjetter. Under et system med karbonbudsjetter teller hvert tonn drivhusgasser mellom nå og 2050. Hvor utslippene stiger i en sektor, skal Storbritannia oppnå tilsvarende fall i en annen. Å bidra til å nå målet for 2050 Vi presenterte karbonbudsjetter som en del av klimaendringsloven 2008 for å hjelpe Storbritannia redusere klimagassutslippene med minst 80 innen 2050. Vi har satt de første 4 karbonbudsjettene i loven som dekker perioden fra 2008 til 2027. Vi har forpliktet oss til å halvere britiske utslipp i forhold til 1990 i fjerde karbonbudsjettperiode (2023-2027). Hvert karbonbudsjett er delt inn i: den omsatte sektoren, som er basert på britisk andel av EUs utslippsordningssystem (ETS) grense for perioden og dekker kraft og tung industri den ikke-omsatte sektoren, som dekker alt annet som vei transport, landbruk og bygninger Spesielt begrenser karbonbudsjettene våre klimagassutslipp til: 3,018 millioner tonn karbondioksidekvivalenter (MtCO2e) i løpet av den første karbonbudsjettperioden (2008-2012) 2 782 MtCO2e i løpet av den andre karbonbudsjettperioden (2013-2017 ) 2.544 MtCO2e over den tredje karbonbudsjettperioden (2018 til 2022) 1.950 MtCO2e over fjerde karbonbudsjettperiode (2023-2027) Disse nivåene er fastsatt av: Karbonplan Karbonplanen beskriver våre retningslinjer og forslag til å møte den første 4 karbonbudsjetter. Den oppdaterer og erstatter 2009 Low Carbon Transition Plan. Møte karbonbudsjettene Våre siste prognoser tyder på at Storbritannia er på rette spor for å møte sine tre første lovgivende karbonbudsjetter: Basert på vår planlagte politikk er det en forventet mangel på 205 MtCO2e over fjerde karbonbudsjett. I karbonplanen satte vi ut scenarier for å bygge en estimert mangel på 181 MtCO2e. Vår revidert beregning gjenspeiler: revidert befolkningsprognose prognoser for fossila brenselprisene klimagassutjevningskorrigeringer revisjoner til estimerte besparelser fra politikk Vår evne til å møte karbonbudsjettene er avhengig av tiltak fra avdelinger som fører til reduksjon av utslipp: Alle avdelinger har imidlertid ansvar for å redusere utslippene fra egne bygninger og eiendom og for å vurdere karbonpåvirkningen av nye retningslinjer. Tiltakene for å møte karbonbudsjetter er avtalt for budsjettperioder 1 til 3 (2008-2022) og detaljert i Low Carbon Transition Plan. Denne informasjonen hjelper oss med å spore fremdrift og risiko for levering, og fungerer som referanse. Miljøstyrelsen (EA) er Storbritannias administrator og engelsk regulator for EUs utslippshandelssystem. EA kan påvirke energieffektiviteten og begrense klimagassutslippene ved å regulere og inspisere: forretningslokaler i sammenheng med forurensningsforebygging og kontroll deponi (deponier avgir drivhusgassmetan) EA arbeider også for å redusere klimagassutslipp gjennom våre regulatoriske roller i andre områder av deres kompetanse: Vannavfall og kystrisikostyring Planleggingssystemet Rapportering fremgang Klimaendringsloven 2008 stiller en lovlig forpliktelse på oss til årlig å rapportere Storbritannias utslipp og fremgang i retning av å møte karbonbudsjettene. To rapporter oppfyller denne forpliktelsen: Carbon accounting Carbon accounting vil bli brukt til å bestemme overholdelse av karbonbudsjettene og målene. Les ytterligere informasjon om CO2-regnskap: Internasjonale luftfart og fraktutslipp og netto britiske Carbon-konto Innenriks luftfart og fraktutslipp er inkludert i gjeldende rammeverk for karbonbudsjett. På grunn av usikkerhet på det tidspunkt klimaavtalen ble vedtatt, ble ikke internasjonale luftfarts - og fraktutslipp inkludert. Loven inneholdt et krav om at regjeringen revurderer deres inkludering innen utgangen av 2012, et krav som ble oppfylt ved legging av en parlamentarisk rapport: Storbritannias karbonbudsjetter og 2050-målet: internasjonale luftfarts - og fraktutslipp 19. desember 2012. Regjeringen annonserte gjennom rapporten at ved å erkjenne usikkerhet over det internasjonale rammebetinget for å redusere luftfartsutslippene og særlig behandlingen av luftfart innen EUs utslippshandel, skjedde det en fast beslutning om å inkludere internasjonale luftfarts - og fraktutslipp innen Storbritannias nettokarbonregning. EUs utslipp Handelssystem (EU ETS) EUs utslippshandelssystem (EU ETS) er en hjørnestein i EUs politikk for å bekjempe klimaendringer og nøkkelverktøyet for å redusere klimagassutslipp kostnadseffektivt. Det er verdens første store karbonmarked og er fortsatt den største. opererer i 31 land (alle 28 EU-land pluss Island, Liechtenstein og Norge) begrenser utslippene fra mer enn 11 000 installasjoner for tungt energibruk (kraftverk og industrielle anlegg) og flyselskapene som opererer mellom disse landene, dekker rundt 45 av EUs klimagassutslipp. Et deksel - og handelssystem EUs ETS arbeider på deknings - og handelsprinsippet. Et deksel er satt på den totale mengden av visse drivhusgasser som kan sendes ut av installasjoner som dekkes av systemet. Kappen er redusert over tid, slik at totale utslipp faller. Innenfor lokket mottar eller kjøper selskaper utslippskvoter som de kan handle med hverandre etter behov. De kan også kjøpe begrensede mengder internasjonale kreditter fra utslippsreddende prosjekter over hele verden. Grensen på det totale antallet kvoter som er tilgjengelig, sikrer at de har en verdi. Etter hvert år må et selskap overgi nok kvoter til å dekke alle sine utslipp, ellers blir det pålagt bøter. Hvis et selskap reduserer sine utslipp, kan det holde reservedelene for å dekke fremtidige behov eller ellers selge dem til et annet selskap som ikke har kvoter. Trading gir fleksibilitet som sikrer at utslippene blir kuttet hvor det koster minst å gjøre det. En robust karbonpris fremmer også investeringer i rene, kulletekniske teknologier. Nøkkelfunksjoner i fase 3 (2013-2020) EUs ETS er nå i tredje fase vesentlig forskjellig fra fase 1 og 2. De viktigste endringene er: En enkelt EU-utslippskutt på utslipp gjelder i stedet for det tidligere systemet med nasjonale caps. Auksjon er standardmetoden for tildeling av kvoter (i stedet for gratis tildeling), og harmoniserte tildelingsregler gjelder for kvoter som fortsatt er gitt bort gratis Flere sektorer og gasser inneholdt 300 millioner kvoter avsatt i New Entrants Reserve for å finansiere distribusjon av innovativ teknologi for fornybar energi og karbonfangst og - lagring gjennom NER 300-programmet. Sektorer og gasser dekket Systemet dekker følgende sektorer og gasser med fokus på utslipp som kan måles, rapporteres og verifiseres med høyt nøyaktighet: karbondioksid (CO 2) fra kraft - og varmeproduksjonenergiintensive industrisektorer, inkludert oljeraffinaderier, stålverk og produksjon av jern, aluminium, metaller, sement , lime, glass, keramikk, papirmasse, papir, papp, syrer og bulk organiske kjemikalier kommersiell luftfart nitrogenoksid (N 2 O) fra produksjon av salpetersyre, adipinsyre og glyoksylsyrer og glyoksalperfluorkarboner (PFCs) fra aluminiumproduksjon Deltakelse i EUs ETS er obligatorisk for selskaper i disse sektorer. men i enkelte sektorer er det bare enkelte planter over en viss størrelse som er inkludert, kan visse små installasjoner utelukkes dersom regjeringer innfører finanspolitiske eller andre tiltak som vil kutte utslippene med tilsvarende beløp i luftfartssektoren, frem til 2016 gjelder EU ETS kun for flyreiser mellom flyplasser i Det europeiske økonomiske samarbeidsområde (EØS). Levering av utslippsreduksjoner EUs ETS har vist at det å sette pris på karbon og handel i det kan fungere. Utslipp fra installasjoner i ordningen faller som forventet med rundt 5 sammenlignet med begynnelsen av fase 3 (2013) (se 2015 tall). I 2020. utslipp fra sektorer som omfattes av systemet, vil bli 21 lavere enn i 2005. Utvikling av karbonmarkedet Opprettelsen i 2005 er EUs ETS verdens første og største internasjonale handel med utslippsrenter, og står for over tre fjerdedeler av internasjonal karbonhandel. EUs ETS er også inspirerende for utviklingen av utslippshandel i andre land og regioner. EU har som mål å knytte EU ETS med andre kompatible systemer. Hoved EUs ETS-lovgivning Karbonmarkedsrapporter Revisjon av EUs ETS for fase 3 Implementering Lovgivningsmessig historie til direktiv 200387EC Arbeid før kommisjonens forslag Kommisjonens forslag fra oktober 2001 Kommisjonens reaksjon på lesing av forslaget i Rådet og parlamentet (inkludert råds fellesstilling) Åpen alle spørsmål Spørsmål og svar på det reviderte EU-utslippshandelssystemet (desember 2008) Hva er målet med utslippshandling Målet med EUs utslippshandelssystem (EU ETS) er å hjelpe EUs medlemsstater til å oppfylle sine forpliktelser for å begrense eller redusere klimagass utslipp på en kostnadseffektiv måte. Å tillate deltakende selskaper å kjøpe eller selge utslippskvoter betyr at utslippsreduksjoner kan oppnås med minst kostnad. EU ETS er hjørnesteinen i EUs strategi for bekjempelse av klimaendringer. Det er det første internasjonale handelssystemet for CO 2 - utslipp i verden og har vært i drift siden 2005. Fra og med 1. januar 2008 gjelder det ikke bare de 27 EU-medlemsstatene, men også de andre tre medlemmene av Det europeiske økonomiske samarbeidsområde Norge, Island og Liechtenstein. Den dekker for tiden over 10 000 installasjoner i energi - og industrisektoren som kollektivt står for nesten halvparten av EUs utslipp av CO 2 og 40 av sine totale klimagassutslipp. En endring av EUs ETS-direktiv som ble vedtatt i juli 2008, vil bringe luftfartssektoren inn i systemet fra 2012. Hvordan fungerer utslippshandling EUs utslippsordning er et deksel - og handelssystem, det vil si at det dekker det totale utslippsnivået, men , innenfor denne grensen, tillater deltakere i systemet å kjøpe og selge kvoter som de krever. Disse godtgjørelsene er felles handelsvaluta i hjertet av systemet. Én godtgjørelse gir innehaveren rett til å avgi et tonn CO 2 eller tilsvarende mengde av en annen drivhusgass. Hetten på det totale antall kvoter skaper knaphet i markedet. I første og andre handelsperiode under ordningen måtte medlemslandene utarbeide nasjonale tildelingsplaner (NAP) som bestemmer deres totale utslipp av utslipp av ETS og hvor mange utslippsbonuser hver installasjon i landet mottar. Ved slutten av hvert år må installasjonene overgi tilskudd tilsvarende deres utslipp. Bedrifter som beholder sine utslipp under nivået av deres kvoter, kan selge sine overskytende kvoter. De som står overfor vanskeligheter med å holde utslippene i tråd med deres kvoter, har valg mellom å ta tiltak for å redusere sine egne utslipp, for eksempel å investere i mer effektiv teknologi eller ved å bruke mindre kullintensive energikilder eller kjøpe de ekstra kvotene de trenger på markedet, eller en kombinasjon av de to. Slike valg vil sannsynligvis bli bestemt av relative kostnader. På denne måten reduseres utslippene der det er mest kostnadseffektivt å gjøre det. Hvor lenge har EU ETS vært i drift EUs ETS ble lansert 1. januar 2005. Den første handelsperioden løp i tre år til slutten av 2007 og var en læring ved å gjøre fase for å forberede seg til den avgjørende andre handelsperioden. Den andre handelsperioden begynte 1. januar 2008 og løper i fem år fram til utgangen av 2012. Betydningen av den andre handelsperioden skyldes at den sammenfaller med Kyoto-protokollens første forpliktelsesperiode, hvor EU og andre industrialiserte land må oppfylle sine mål for å begrense eller redusere klimagassutslipp. For den andre handelsperioden har utslippene av utslipp fra EU utslått seg til rundt 6,5 under 2005-nivå for å sikre at EU som helhet og medlemsstatene individuelt leverer sine Kyoto-forpliktelser. Hva er de viktigste erfaringene fra erfaringer så langt EUs ETS har satt pris på karbon og vist at handel med klimagassutslipp fungerer. Den første handelsperioden har vellykket etableringen av fri handel med utslippskvoter i hele EU, etablert den nødvendige infrastrukturen og utviklet et dynamisk karbonmarked. Miljøfordelen i første fase kan begrenses på grunn av overdreven tildeling av kvoter i enkelte medlemsstater og enkelte sektorer, hovedsakelig på grunn av tillit til utslippsprognoser før verifiserte utslippsdata ble tilgjengelig under EUs ETS. Når publiseringen av verifiserte utslippsdata for 2005 fremhevet denne overallokering, reagerte markedet som forventet ved å senke markedsprisen på kvoter. Tilgjengeligheten av verifiserte utslippsdata har gitt Kommisjonen anledning til å sikre at kapasiteten på nasjonale tildelinger i andre fase er satt til et nivå som gir reelle utslippsreduksjoner. I tillegg til å understreke behovet for verifiserte data har erfaringen hittil vist at større harmonisering innenfor EUs ETS er viktig for å sikre at EU oppnår målene for utslippsreduksjoner minst og med minimal konkurransevridning. Behovet for mer harmonisering er tydeligste med hensyn til hvordan cap på generelle utslippskvoter er satt. De to første handelsperioder viser også at vidt forskjellige nasjonale metoder for tildeling av kvoter til installasjoner truer rettferdig konkurranse i det indre markedet. Videre er det behov for større harmonisering, avklaring og forfining med hensyn til systemets omfang, tilgangen til kreditter fra utslippsreduksjonsprosjekter utenfor EU, betingelsene for å knytte EU ETS til utslippshandelssystemer andre steder og overvåking, verifisering og rapporteringskrav. Hva er de viktigste endringene i EU ETS og når vil de søke? De avtalte designendringene gjelder fra tredje handelsperiode, det vil si januar 2013. Mens forberedende arbeid vil bli igangsatt umiddelbart, vil gjeldende regler ikke endres til januar 2013 for å sikre at regulatorisk stabilitet opprettholdes. EU ETS i tredje periode vil være et mer effektivt, mer harmonisert og rettferdig system. Økt effektivitet oppnås ved en lengre handelsperiode (8 år i stedet for 5 år), en robust og årlig redusert utslippsdekning (21 reduksjon i 2020 sammenlignet med 2005) og en betydelig økning i auksjonen (fra mindre enn 4 i fase 2 til mer enn halvparten i fase 3). Mer harmonisering er blitt avtalt på mange områder, blant annet med hensyn til cap-setting (en EU-bred cap i stedet for de nasjonale kapsene i fase 1 og 2) og reglene for overgangsfri allokering. Systemets rettferdighet er økt vesentlig ved overgangen til EU-ledige tildelingsregler for industriinstallasjoner og ved innføring av en omfordelingsmekanisme som gir nye medlemsstater mulighet til å auksjonere flere kvoter. Hvordan sammenligner den endelige teksten med det innledende forslaget til Kommisjonen Klima - og energimålene som ble vedtatt av Det europeiske forårsmøtet 2007, er opprettholdt, og den overordnede arkitekturen i kommisjonens forslag om EUs ETS forblir intakt. Det vil si at det vil være en EU-wide cap på antall utslippsbonuser, og denne cap vil redusere årlig langs en lineær trendlinje, som vil fortsette utover slutten av den tredje handelsperioden (2013-2020). Hovedforskjellen i forhold til forslaget er at auksjonering av kvoter skal fases inn sakte. Hva er de viktigste endringene i forhold til Kommisjonens forslag Sammendrag De viktigste endringene som er gjort i forslaget er som følger: Enkelte medlemsstater får en valgfri og midlertidig unntak fra regelen om at ingen kvoter skal tildeles gratis til elektrisitetsgeneratorer fra 2013. Dette alternativet til å fravike er tilgjengelig for medlemsstater som oppfyller visse forhold knyttet til sammenkobling av elnett, andel av ett enkelt fossilt brensel i kraftproduksjon og BNPkapital i forhold til gjennomsnittet for EU-27. I tillegg er mengden gratis kvoter som en medlemsstat kan tildele til kraftverk begrenset til 70 karbondioksidutslipp av relevante anlegg i fase 1 og avtar i årene etterpå. Videre kan gratis tildeling i fase 3 kun gis til kraftverk som er i drift eller under bygging senest ved utgangen av 2008. Se svar på spørsmål 15 nedenfor. Det vil være flere detaljer i direktivet om hvilke kriterier som skal brukes for å bestemme sektorer eller delsektorer som anses å være utsatt for en betydelig risiko for karbonlekkasje. og en tidligere dato for offentliggjøring av kommisjonens liste over slike sektorer (31. desember 2009). Videre er det gjenstand for gjennomgang når en tilfredsstillende internasjonal avtale er nådd, og installasjoner i alle utsatte næringer vil motta 100 gratis kvoter i den grad de bruker den mest effektive teknologien. Fri allokering til industrien er begrenset til andelen av disse næringene utslippene i totale utslipp i 2005 til 2007. Det totale antall kvoter som tildeles gratis til installasjoner i industrisektorer, vil avta årlig i takt med nedgangen i utslippstakten. Medlemsstatene kan også kompensere visse installasjoner for CO 2 - kostnader som overføres i elektrisitetsprisene dersom CO 2 - kostnadene ellers ville kunne utsette dem for risiko for karbonlekkasje. Kommisjonen har forpliktet seg til å endre Fellesskapets retningslinjer for statsstøtte til miljøvern i denne forbindelse. Se svar på spørsmål 15 nedenfor. Nivået på auksjonering av kvoter for ikke-eksponert industri vil øke lineært som foreslått av Kommisjonen, men i stedet for å nå 100 innen 2020 vil det nå 70, med sikte på å nå 100 innen 2027. Som forutsatt i kommisjonens forslag , Vil 10 av godtgjørelsene for auksjonering bli omfordelt fra medlemsstater med høy inntekt per innbygger til de med lav inntekt per innbygger for å styrke den økonomiske kapasiteten til sistnevnte til å investere i klimavennlige teknologier. En bestemmelse er lagt til for en annen omfordelingsmekanisme med 2 av auksjonert kvoter for å ta hensyn til medlemsstater som i 2005 hadde oppnådd en reduksjon på minst 20 i klimagassutslipp sammenlignet med referanseperioden fastsatt i Kyoto-protokollen. Andelen av auksjonsinntektene som medlemmene anbefales å bruke for å bekjempe og tilpasse seg klimaendringer, hovedsakelig innenfor EU, men også i utviklingsland, heves fra 20 til 50 år. Teksten gir en oversikt over det foreslåtte tillatte nivået bruk av JICDM-kreditter i 20-scenariet for eksisterende operatører som mottok de laveste budsjettene for å importere og bruke slike kreditter i forhold til tildelinger og tilgang til kreditter i perioden 2008-2012. Nye sektorer, nye aktører i perioder 2013-2020 og 2008-2012 vil også kunne bruke kreditter. Den totale mengden kreditter som kan bli brukt vil imidlertid ikke overstige 50 av reduksjonen mellom 2008 og 2020. På grunnlag av en strengere utslippsreduksjon i sammenheng med en tilfredsstillende internasjonal avtale, kunne Kommisjonen tillate ytterligere tilgang til CER og ERU for operatører i fellesskapsordningen. Se svar på spørsmål 20 nedenfor. Provenuet fra auksjonering av 300 millioner kvoter fra reserven til nye aktører vil bli brukt til å støtte opptil 12 demonstrasjonsprosjekter og prosjekter for karbonfangst og lagring som viser innovativ teknologi for fornybar energi. En rekke vilkår er knyttet til denne finansieringsmekanismen. Se svar på spørsmål 30 nedenfor. Muligheten for å utvide små forbrenningsanlegg dersom de er underlagt tilsvarende tiltak, er utvidet til å dekke alle små installasjoner uavhengig av aktivitet, utslippstærskelen er økt fra 10 000 til 25 000 tonn CO 2 per år, og kapasitetstærskelen som forbrenningsanlegg må oppfylle i tillegg har blitt økt fra 25MW til 35MW. Med disse økte terskelene vil andelen dekket utslipp som potensielt kan utelukkes fra utslippshandelssystemet bli betydelig, og derfor er det lagt til en bestemmelse for å muliggjøre en tilsvarende reduksjon av EU-brutto på kvoter. Vil det fortsatt være nasjonale tildelingsplaner? Nei. I sine NAPer for første (2005-2007) og andre (2008-2012) handelsperioder bestemte medlemslandene den totale mengden kvoter som skal utstedes, og hvordan disse vil bli tildelt de berørte installasjonene. Denne tilnærmingen har gitt betydelige forskjeller i tildelingsregler, noe som skaper incitament for hver medlemsstat til å favorisere sin egen industri, og har ført til stor kompleksitet. Fra tredje handelsperiode vil det bli en EU-wide cap og kvoter vil bli allokert på grunnlag av harmoniserte regler. Nasjonale tildelingsplaner vil derfor ikke være nødvendig lenger. 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).Participating in the EU ETS Introduction to the EU Emissions Trading System including how the cap-and-trade System works, how free allowances are allocated, details on complying, the inclusion of aviation in the System and the UKs opt-out scheme for small emitters and hospitals. The EU ETS is the largest multi-country, multi-sector greenhouse gas emissions trading system in the world. It includes more than 11,000 power stations and industrial plants across the EU with around 1,000 of these in the UK. These 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 also be covered by the EU ETS depending upon the combustion capacity of equipment at their sites. Aviation operators flying into or from a European airport are also covered by the EU ETS . This guidance explains the EU s cap and trade system, including details of the phases of delivery of the System. It provides information on the UKs application for Phase III free allowances via its National Implementation Measures (NIMs ), as well as details of compliance and verification. There are also sections on emissions regulation for the aviation industry and the UKs Small Emitters and Hospitals Opt-out Scheme. Cap and trade The EU ETS works on a cap and trade basis, so there is a cap or limit set on the total greenhouse gas emissions allowed by all participants covered by the System and this cap is converted into tradable emission allowances. Tradable emission allowances are allocated to participants in the market in the EU ETS this is done via a mixture of free allocation and auctions. One allowance gives the holder the right to emit one tonne of CO2 (or its equivalent). Participants covered by the EU ETS must monitor and report their emissions each year and surrender enough emission allowances to cover their annual emissions. Participants who are likely to emit more than their allocation have a choice between taking measures to reduce their emissions or buying additional allowances either from the secondary market e. g. companies who hold allowances they do not need or from Member State held auctions. More information is available on the EU ETS. carbon markets webpage. It does not matter where (in terms of physical location) emission reductions are made because emissions savings have the same environmental effect wherever they are made. The rationale behind emissions trading is that it enables emission reductions to take place where the cost of the reduction is lowest, lessening the overall cost of tackling climate change. How trading works: a simplified hypothetical example Historically installation A and installation B both emit 210 tonnes of CO2 per year. Under the EU s allocation process they are given 200 allowances each. At the end of the first year, emissions of 180Mt were recorded for installation A as it installed an energy efficient boiler at the beginning of the year which reduced its CO2 emissions. It is now free to sell its surplus allowances on the carbon market. Installation B however emitted 220Mt 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 400 allowances issued to both installations. Delivery phases of the Emissions Trading System To date, three operational phases of the EU ETS have been delivered or agreed although it is envisaged the scheme will continue beyond 2020: Phase I (1 January 2005 to 31 December 2007) This phase is complete. Further details around this phase can be viewed on the National Archives version of the DECC: EU ETS Phase I web page . Phase II (1 January 2008 to 31 December 2012) Phase II of the EU ETS coincided with the first Kyoto Commitment Period. 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. Each NAP had to be approved by the European Commission. The approved UK Phase II NAP was published on 16 March 2007. Further details around this phase can be viewed on the National Archives version of the National Archives version of the DECC: EU ETS Phase 2 web page . Phase III (1 January 2013 to 31 December 2020) 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: an EU - wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UKs scheme to lower compliance costs for small emitters and hospitals. The EU cap will reduce the number of available allowances by 1.74 each year, delivering an overall reduction of 21 below 2005 verified emissions by 2020. The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards. Free allocation of allowances 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. In 2011, Member States were required to submit to the European Commission a list of the preliminary number of free allowances to be issued to each industrial installation in Phase III, referred to as National Implementation Measures or NIMs . The UK submitted its NIMs to the European Commission on 12 December 2011, and subsequently submitted modified NIMs in April 2012. On 5 September 2013 the European Commission announced completion of the process to check and confirm the free allocation of EU ETS allowances in each Member States NIMs. 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 factor reduced the preliminary allocation for each EU ETS installation by 5.73 in 2013, rising to 17.56 in 2020. The average reduction of allocation is therefore 11.58 over the period 2013-2020. The first list below shows free allocation figures in Phase III for each industrial installation in the UK, as approved by the European Commission on 18 December 2013. The second list shows updated free allocation figures for Phase III, taking into account any changes to the allocation agreed in the UKs NIMs for individual installations as of 30 April 2014, for instance due to partial cessations, significant capacity reductions or where installations have entered the EU ETS (new entrants). This list will be updated on an annual basis to take into account further changes to allocation over the course of the phase. MS Excel Spreadsheet. 73.2KB This file may not be suitable for users of assistive technology. Be om et tilgjengelig format. 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. Fortell oss hvilket format du trenger. Det vil hjelpe oss hvis du sier hvilken hjelpeteknologi du bruker. PDF. 635KB. 14 pages This file may not be suitable for users of assistive technology. Be om et tilgjengelig format. 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. Fortell oss hvilket format du trenger. Det vil hjelpe oss hvis du sier hvilken hjelpeteknologi du bruker. PDF. 727KB. 31 pages This file may not be suitable for users of assistive technology. Be om et tilgjengelig format. 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. Fortell oss hvilket format du trenger. Det vil hjelpe oss hvis du sier hvilken hjelpeteknologi du bruker. PDF. 397KB. 32 pages This file may not be suitable for users of assistive technology. Be om et tilgjengelig format. 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. Fortell oss hvilket format du trenger. Det vil hjelpe oss hvis du sier hvilken hjelpeteknologi du bruker. Carbon leakage and the EU ETS 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. In the meantime, the EU ETS provides two mechanisms to mitigate the risk of carbon leakage. First, sectors deemed to be at significant risk of carbon leakage are eligible to receive 100 free allocation of allowances up to the sectors benchmark. This is a significant source of relief, as sectors not deemed at risk will receive 80 of their allocation for free in 2013, declining annually to 30 in 2020 with a view to reaching 0 (i. e. full auctioning) in 2027. The second mechanism allows Member States to compensate sectors at significant risk of carbon leakage as a result of indirect EU ETS costs (i. e. 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. We are concerned however that those most at risk may not be compensated sufficiently in the future if current EU ETS rules are not reformed for Phase IV of the EU ETS . 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 2014, 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. The final report, case studies and associated peer review are available: Carbon leakage prospects under Phase III of the EU ETS and beyond Assessment of carbon leakage status for the free allocation of allowances 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 2013-2014 were agreed through the EU comitology procedure in December 2009. 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. On 5 May 2014, the European Commission published its draft list of sectors for the period 2015-19. based on the quantitative and qualitative criteria set out in the ETS Directive. The draft carbon leakage list will be presented to the EU Climate Change Committee for vote shortly, after which it must be sent to the European Parliament and the Council for three months scrutiny before adoption. On 31 August 2013, the UK responded to the European Commissions consultation on the methodology for determination of the carbon leakage list for 2015-19. UK response to the European Commissions consultation on assumptions to be used for the 2015-19 EU ETS carbon leakage list ( PDF. 163KB. 12 pages ) Indirect carbon leakage compensation scheme In the 2011 Autumn Statement, the Chancellor announced that the government intended to implement measures to reduce the impact of policy on the costs of electricity for the most electricity-intensive industries, beginning in 2013 and worth around 250 million over the Spending Review period. As part of this, the government has committed to compensate the most electricity-intensive businesses to help offset the indirect cost of the Carbon Price Floor and the EU ETS. subject to state aid guidelines. In the 2014 Budget, the Chancellor announced that compensation for the indirect costs of the Carbon Price Floor and the EU ETS would be extended to 2019-20. The European Commission adopted revised State Aid guidelines on compensation for the indirect costs of the EU ETS in June 2012. These guidelines list the sectors deemed to be exposed to a significant risk of carbon leakage due to indirect emissions costs, and provide details of the maximum levels of compensation that can be made available to them. Any Member State compensation scheme must be designed within the framework set by the European Commission. In October 2012, DECC and BIS launched the energy intensive industries compensation scheme consultation. which set out our proposals for the eligibility and design of the compensation package. The consultation, which closed in December 2012, provided an opportunity for all those interested in the package to comment on the proposals, helping us ensure that compensation is targeted at those companies who are most at risk of carbon leakage as a result of energy and climate change policies. Following detailed consideration of the responses and state aid clearance for the EU ETS compensation package, in May 2013 we published the governments response to the consultation and the final compensation scheme design for the EU ETS. The UK started making payments in respect of indirect costs of the EU ETS in 2013. For Carbon Price Floor compensation, which remains subject to state aid approval from the European Commission, we expect to publish guidance later in the summer and begin payments shortly thereafter. New Entrants Reserve The New Entrants Reserve (NER ) is a set aside of EU allowances, reserved for new operators or existing operators who have significantly increased capacity. The UKs EU ETS Regulators are responsible for administering and assessing all NER applications. Operators starting a new entrant activity must submit an NER application to their regulator within 12 months of starting normal operation of the new or extended activity. More information on applying to the Phase III NER is available on the Environment Agency: EU ETS New Entrant Reserve (NER ) webpage. Further information on allowances can be found on the EU ETS. allowances page . Complying with the EU ETS The Greenhouse Gas Emissions Trading System Regulations 2012 require all operators that carry out an activity covered by the EU ETS to hold a greenhouse gas emissions permit - in effect, a licence to operate and emit greenhouse gases covered by the EU ETS. Activities covered by the EU ETS are any of the activities listed in Annex I to the EU ETS Directive . The EU ETS Regulators are responsible for enforcing compliance with the EU ETS Regulations, including operational functions such as granting and maintaining permits and emissions plans (for aviation), monitoring and reporting (including monitoring plans), assessing verified emission reports (and tonne-kilometre reports), assessing applications to the NER. determining reductions in allocations as a result of changes in capacity or cessation of activities, exchanging of information with UKAS on verifier activities. For the purpose of calculating civil penalties, DECC determines the value of the EU ETS carbon price used by the regulator. The determination is published in November each year: On 7 August 2013, we launched a consultation on a number of technical amendments to the Greenhouse Gas Emissions Trading Scheme Regulations 2012 so as to simplify and harmonize EU ETS penalties in the transition to Phase III, improve clarity and reduce the burden for businesses. The consultation closed on 19 September 2013. For more information on how to comply with EU ETS please visit: Monitoring, reporting, verification and accreditation An EU ETS operator must propose a monitoring plan when applying for a greenhouse gas emissions permit (or emissions plan for aviation operators). The monitoring plan provides information on how the EU ETS operators emissions will be measured and reported. A monitoring plan must be developed in accordance with the European Commissions Monitoring and Reporting Regulation and be approved by an EU ETS Regulator. The reporting year runs from 1 January to 31 December each year. The EU ETS requires all annual emissions reports and monitoring to be verified by an independent verifier in accordance with the Accreditation and Verification Regulation. A verifier will check for inconsistencies in monitoring with the approved plan and whether the data in the emissions report is complete and reliable. The European Commissions Guidance on the Accreditation and Verification Regulation aims to help operators of all stationary installations, aviation operators, verification bodies and regulators perform verifications consistently throughout the EU. It provides practical information and advice on the process and requirements for annual verification required by the EU ETS Directive, the European Commissions Monitoring and Reporting Regulation and Greenhouse Gas permitsmonitoring planstonne-kilometre plans. Finding an accredited EU ETS verifier in the UK The Accreditation and Verification Regulation (Commission Regulation 6002012EU ) requires EU ETS verifiers to meet specific requirements. 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. Be om et tilgjengelig format. 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. Fortell oss hvilket format du trenger. Det vil hjelpe oss hvis du sier hvilken hjelpeteknologi du bruker. 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.
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