EU ETS From 2013 -2020 – EC Proposals

1. EU ETS From 2013 -2020 – EC
Proposals
David Flinn
A&L Goodbody

2. EU ETS From 2012 – EC Proposals
The most significant changes proposed by the
Commission are as follows:-
New Gases
• Expansion of the EU ETS to cover new gases and industrial sectors. Nitrous Oxide
and Perflurocarbons (along with CO2) from the chemical and aluminum sectors are to
be brought within the EU ETS.
Compliance Period
• The Phase 3 compliance period is set to be an 8 year period from 2013 to end 2020,
whereas Phase 2 is only for 5 years (2008-2012).
EU Wide Allocation Plan
• Replacing the requirement of individual Member States to produce National Allocation
Plans (“NAPs”) with a single EU-Wide allocation of EU allowances in accordance with
harmonised rules.
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3. EU ETS From 2012 – EC Proposals
EU Allowances
• In Order to meet the EU’s target of a 20% reduction in greenhouse gases by 2020
compared with 1990, the Commission proposes that the total number of EU
allowances in the EU-wide cap is set to decrease annually in a linear manner by
1.74% p.a. (from the number of EU allowances issued by Member States pursuant
to their NAPs for Phase 2) from 2013.
Auctions
• The Basic principle behind allocation of EU allowances in Phase 3 will be
auctioning. The Commission estimates that 60% of the total number of EU
allowances will be auctioned in 2013, and that this proportion should increase over
time so that no free EU allowances will be distributed by 2020. The Commission
believes this principle is no better reflected that in the power sector where EU
allowances will be distributed on a 100% auctioned bases.
Single EU Registry
• Issued EU Allowances are to be held in a single Community registry instead of the
current individual Member State registries.
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