Understanding the Link Between Aggregated Industrial Production and the Carbon Price - Green Energy and Efficiency: An Economic Perspective - page 110

2 Current Issues in the EU ETS

As a brief reminder, the perimeter of the scheme covers approximately 11,000
installations in the EU27, i.e., it accounts for 45 % of EU greenhouse gases.
In addition, the ETS is a liquid market, with millions of allowances traded each
day on a number of exchanges, and over-the-counter. For instance, the average
daily trading volume in 2011 was equal to 23 million EUAs (including futures),
summing up to an amount of 6 billion annual trading volume. Until the end of June
2012, the accumulated total trading of futures since the creation of the scheme was
equal to 20.4 billion allowances.
In this section, we 2012 compliance data,

and second some uncertainties pertaining to the future development of the European
carbon market.

rst discuss the gures of the 2011

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2.1 A Look at the 2011 - 2012 Compliance Data

According to the compilation of preliminary data by Point Carbon, 1 the phase II of
the EU ETS was oversupplied by 1.7 billion CO 2 units, with almost half the surplus
coming in 2012. Let us breakdown this information over the last two compliance
years 2011

2012.

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2.1.1 Year 2011

According to Carbon Market Data, 2 installations were long by 87 Mt in 2011. It
implies that installations emitted in total 4.9 % less CO 2 than the number of
allowances allocated

a total of 1,985 million allowances. Similarly, a 2.1 % drop
in CO 2 emissions was recorded during the corresponding year.
In 2011, emissions from the combustion sector (which accounts for 70 % of EU
ETS emissions) showed a 2.2 % decrease. Other industrial sectors have seen their
CO 2 emissions falling for ceramics (

—

32.3 %), cement ( 20.2 %), or steel

− −

( − 14.1 %) for instance.
Following the release of veri ed emissions reports 3 for the year 2011, RWE,

Vattenfall and E.ON were the three biggest CO 2 emitters of the EU ETS by emitting

1

See the news release “ EU carbon market oversupplied by 1.7 bln: analysts” dated April 2, 2013

at www.pointcarbon.com
2 Available at www.carbonmarketdata.com . Last accessed October 4, 2012.
3 These gures are calculated at group level, taking into account both minority and majority
stakeholdings in other companies included in the EU emissions trading scheme. Figures do not
include the EU allowances distributed for free to new entrants, as these data are not shown in the
Community Independent Transaction Log (the EU carbon trading registry, also called CITL).
A “new entrant” is de ned in the EU directive establishing the carbon trading scheme as a new