Environmental Engineering Reference
In-Depth Information
included in the scheme, establishing the methodology for allocating emissions and
leveraging the possibilities for
exibility afforded by the clean development and
joint implementation mechanisms (CDM and JIM, respectively) created by the
Kyoto Protocol.
Basically, companies received emissions allowances free of charge under
national allocation plans (NAPs), which were designed by national authorities on
the basis of the emission reduction ceilings set by governments at national level and
the prospects for development over time in each particular sector and installation.
At the end of the year, each company then had to submit to the relevant admin-
istrative authority emissions allowances equivalent to the volume of CO
2
emissions
(in tonnes) released into the atmosphere.
The experience gained by the European Commission in the early years of the EU
ETS was taken into account when drafting Directive [
6
] 2009/29/EC, of 23 April
2009, so as to improve and extend the GHG emissions scheme of the Community.
One signi
ned
and a centralised emissions allowance allocation system was set up with the same
norms applying throughout Europe. Under the new scheme, the auctioning of
allowances was established as the basic methodology for allocation in the electricity
sector, with some exceptions being made in the case of certain particular circum-
stances, mostly affecting former Eastern Bloc countries.
In short, Directive [
6
] 2009/29/EC constitutes the basic framework for regulating
the trading of GHG emissions allowances from 2013 onwards (referred to as Phase
III). Some of the main changes are as follows:
cant change was the fact that a European emissions ceiling was de
The allocation of emissions allowances to all of the installations included in the
scheme is centralised at European level (European ceiling) and binding target
quotas are set at national level. As mentioned previously, this allocation is
generally carried out by means of an auction.
Allocation free of charge is only envisaged in production sectors at risk of
“
carbon leakage
”
(i.e. at risk of relocation outside the EU).
The possibility is also envisaged of an activity with intensive electricity con-
sumption being affected by carbon leakage as a result of electricity becoming
more expensive due to the implementation of the emissions allowance trading
scheme.
For ef
ciency reasons, Member States are allowed to exclude small installations
from the EU ETS.
The use of allowances derived from the use of mechanisms linked to project
development under the terms of the Kyoto Protocol
is
limited in accordance with the principle of complementarity: the total volume
may not exceed 50 % of the reduction.
—
i.e. JIM and the CDM
—
“
”
5 % of the total allowances is reserved for
. 2 % of this amount
must be allocated to fund pilot projects involving generation from renewable
energy sources and carbon capture and storage.
new entrants
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