Sistema de comércio de emissões eu

Tampão de emissão e subsídios.

O volume global de gases com efeito de estufa que pode ser emitido pelas usinas, fábricas e outras instalações fixas abrangidas pelo sistema de comércio de emissões da UE (EU ETS) é limitado por um "limite" no número de licenças de emissão. Um limite separado aplica-se ao setor de aviação. Dentro destes limites europeus, as empresas recebem ou compram licenças de emissão que podem negociar conforme necessário.

Cada subsídio dá ao titular o direito de emitir.

uma tonelada de dióxido de carbono (CO 2), o principal gás com efeito de estufa ou a quantidade equivalente de dois gases estufa mais potentes, óxido nitroso (N 2 O) e perfluorocarbonos (PFC).

Algumas licenças são alocadas ou vendidas especificamente aos operadores de aviação. As companhias aéreas podem usar quaisquer subsídios para fins de conformidade, mas as instalações fixas não podem usar subsídios de aviação.

O cap para instalações fixas diminui a cada ano.

O limite de 2018 para emissões de instalações fixas foi fixado em 2.084.301.856 subsídios. Durante a fase 3 do RCLE UE (2018-2020), este limite diminui anualmente através de um factor de redução linear de 1,74% da quantidade total média de licenças emitidas anualmente em 2008-2018. Isso equivale a uma redução de 38.264.246 subsídios a cada ano.

O factor de redução linear determina o ritmo das reduções de emissões no ETS da UE. É uma característica sem data de término e, como tal, dá certeza aos investidores sobre o retorno do investimento em reduções de emissões.

Graças ao limite decrescente, o número de licenças que podem ser utilizadas por instalações fixas para cobrir as emissões será 21% menor em 2020 do que em 2005.

Para atingir o objectivo de reduzir as emissões da UE em 40% até 2030 em comparação com 1990, acordado pelos líderes da UE como parte do quadro climático e energético de 2030, o limite terá de diminuir 2,2% por ano a partir de 2021.

Isso reduziria as emissões de instalações fixas para cerca de 43% abaixo dos níveis de 2005 até 2030. Em 2050, as emissões seriam reduzidas em cerca de 90% em relação a 2005.

Capa de aviação fixada em 210 milhões de licenças para 2018-2020.

O limite do sector da aviação continua a ser o mesmo em cada ano do período comercial 2018-2020.

O limite foi fixado provisoriamente em 210.349.264 subsídios de aviação por ano, que é 5% abaixo do nível médio anual de emissões da aviação no período de base 2004-2006.

O limite será ajustado para incluir actividades de aviação adicionais resultantes da plena integração da Croácia na parte da aviação do RCLE da UE em 1 de Janeiro de 2018.

Documentos úteis.

Abra todas as perguntas.

Comércio de emissões: Perguntas e Respostas sobre a segunda decisão da Comissão sobre o limite EU ETS para 2018 (outubro de 2018)

Qual é o limite EU ETS e por que são necessárias duas etapas para configurá-lo?

O limite EU EU é o montante total de licenças de emissão a emitir para um determinado ano no âmbito do sistema de comércio de licenças de emissão da UE (EU ETS). Uma vez que cada subsídio representa o direito de emitir uma tonelada de CO 2 - ou uma quantidade de outros gases com efeito de estufa, dando a mesma contribuição para o aquecimento global como uma tonelada de CO 2 - o número total de licenças, ou seja, o "limite", determina o máximo quantidade de emissões possível no âmbito do RCLE da UE.

Em julho de 2018, a Comissão adotou uma decisão que determinou o limite máximo para 2018 com base no escopo atual do ETS da UE, ou seja, as instalações abrangidas no período 2008-2018. A segunda decisão, adotada hoje, leva em consideração o alcance alargado do ETS da UE a partir de 2018.

Quais os novos setores e gases abrangidos pelo âmbito ampliado?

O ETS da UE abrange instalações que realizam atividades específicas. Desde o seu lançamento em 2005, o sistema cobriu, acima de certos limiares de capacidade, centrais elétricas e outras instalações de combustão, refinarias de petróleo, fornos de coque, instalações de ferro e aço e instalações de produção de cimento, vidro, limão, tijolos, cerâmica, celulose, papel e cartão . Quanto aos gases de efeito estufa, atualmente cobre apenas emissões de dióxido de carbono, com exceção dos Países Baixos e da Áustria, que optaram por incluir emissões de emissões de óxido nitroso (N2O) de algumas instalações específicas.

A partir de 2018, o alcance do ETS será alargado para incluir outros sectores e gases com efeito de estufa. Inter alia, serão incluídas mais emissões de CO 2 das instalações produtoras de produtos químicos orgânicos, hidrogênio, amônia e alumínio, assim como as emissões de N2O da produção de produção de ácido nítrico, adípico e glicocálico e perfluorocarbonos do setor de alumínio. As instalações que realizam atividades que resultam em essas emissões serão incluídas no RCLE da UE a partir de 2018.

Qual é o limite para 2018 e como foi determinado?

O limite máximo para o ano de 2018 foi determinado em 2.084.301.856 subsídios.

Este valor baseia-se nos planos nacionais de atribuição dos Estados-Membros para o período de 2008 a 2018, mas também leva em conta o alcance alargado do RCLE UE a partir de 2018, bem como as instalações "optaram pelo sistema pelos Estados-Membros a partir de 2008 . É composto dos seguintes elementos:

A quantidade de licenças de emissão da União que foram emitidas pelos Estados-Membros em conformidade com as decisões da Comissão sobre os planos nacionais de atribuição dos Estados-Membros para o período de 2008 a 2018. Este montante ascende a 1.976.784.044 em 2018. A quantidade média anual de licenças de emissão que foram emitidos pelos Estados-Membros para instalações que os Estados-Membros "optaram" no ETS da UE. Isso equivale a 2.678.155. A quantidade de licenças que leva em conta o efeito do alcance alargado do RCLE UE, ou seja, instalações que serão incluídas a partir de 2018. Isto diz respeito a instalações que emitem os seguintes gases com efeito de estufa: emissões de CO 2 de produtos petroquímicos, amoníaco e alumínio, emissões de N2O da produção de produção de ácido nítrico, adípico e glicocálico e perfluorocarbonos do setor de alumínio.

A partir desta quantidade, a quantidade de licenças que representam o efeito das instalações excluídas do ETS da UE deveria ser deduzida. O montante correspondente deduzido foi de 4.751.898.

Uma vez que o limite máximo para 2018 é calculado a partir do meio do período de 2008 a 2018, ou seja, 2018, o fator de redução linear de 1,74% (em números absolutos: 38,264,246 subsídios) deve ser aplicado três vezes (em 2018, 2018, 2018) a fim de chegar ao total da quantidade absoluta total de licenças (cap) para 2018, ou seja, 2.084.301.856 subsídios.

Como os vários números foram estabelecidos no nível de 2018?

O número que representa a quantidade de licenças a emitir de acordo com os Planos Nacionais de Alocação foi estabelecido aplicando a mesma metodologia utilizada na decisão de julho da Comissão [2]. Basicamente, isso significa que a quantidade total realmente disponível no período de 2008 a 2018 foi adicionada e dividida por cinco. No entanto, conforme estabelecido na presente decisão, informações adicionais foram levadas em consideração, principalmente relacionadas a novos operadores e instalações fechadas. Como conseqüência, os números correspondentes são agora ligeiramente superiores aos indicados na decisão de julho.

A figura que representa o efeito dos opt-ins foi estabelecida de forma semelhante à que figura acima, ou seja, a média anual relevante para 2018 foi calculada somando o valor total das licenças optadas para o período de 2008 a 2018 e dividindo-o pelo número de anos relevante.

A fim de determinar a quantidade de licenças pelas quais o limite deve ser ajustado para reflectir o âmbito alargado do RCLE UE a partir de 2018, os Estados-Membros devem assegurar que os operadores das instalações que realizam actividades que serão incluídas na UE ETS apenas a partir de 2018 apresentou dados de emissões devidamente fundamentados e verificados de forma independente.

Os Estados-Membros devem notificar dados devidamente fundamentados à Comissão até 30 de junho de 2018. Os dados notificados à Comissão abrangem diferentes anos de emissões verificadas e, portanto, não são facilmente comparáveis. A Comissão teve que estabelecer uma abordagem com vista a proporcionar condições equitativas para todas as instalações incluídas no RCLE-UE a partir de 2018. Para este fim e para a criação da quantidade de licenças para a União em 2018, a Comissão assumiu que as instalações a serem incluídas a partir de 2018 tiveram o mesmo nível de esforços de redução de emissões que as instalações já incluíram antes de 2018. Por esse motivo, o fator de redução linear de 1,74% foi aplicado ao valor médio anual a partir do meio do período coberto pelos dados de emissão verificados notificados por cada Estado-Membro. O resultado representaria o nível de emissões em 2018, se as instalações em questão já estivessem incluídas no ETS da UE.

Como os dados de emissão para os novos setores e gases foram coletados?

Os Estados-Membros recolheram os dados necessários das instalações que realizam actividades que serão incluídas no RCLE-UE a partir de 2018. Estes dados tiveram de ser verificados independentemente antes de os operadores das instalações relevantes os apresentarem às autoridades competentes dos respectivos Estados-Membros (para cujo prazo era 30 de abril de 2018). Sempre que os Estados-Membros considerassem estes dados devidamente fundamentados, poderiam notificá-los à Comissão até 30 de Junho de 2018. Com base nestas notificações, a Comissão tomou em consideração o alcance alargado do RCLE UE a partir de 2018.

O limite de 2018 é final?

Na prática e em grande medida sim. No entanto, o ajuste fino marginal provavelmente será necessário ao longo do tempo, para os seguintes motivos potenciais:

Antes do final de 2018, mais novos operadores podem entrar no mercado solicitando subsídios de reservas de novos operadores de novos Estados-Membros que não puderam ser levados em consideração no cálculo do limite até o momento. Estas reservas não foram tidas em conta, quer porque o Estado-Membro decidiu não vender ou licenciar licenças de emissão que não tenham sido distribuídas aos novos participantes até o final de 2018, ou porque ainda não decidiu vender ou licitar subsídios. Somente as reservas dos novos participantes dos Estados-Membros que decidiram vender ou leilão dessas licenças foram levadas em consideração até o momento. Os projetos de redução de emissão planejados no âmbito do mecanismo de Implementação Conjunta do Protocolo de Quioto (ou em alguns casos no Mecanismo de Desenvolvimento Limpo) podem não se materializar e, portanto, não podem gerar créditos que possam ser usados ​​para compensar as emissões no ETS da UE. Por este motivo, as licenças podem ser alocadas a partir do chamado "JI reservado"; Os Estados-Membros podem ainda "optar" pelas instalações e actividades do EET da UE não abrangidas pelo âmbito de aplicação da directiva; Os Estados-Membros podem excluir, no terceiro período de negociação, algumas pequenas instalações específicas se houver medidas equivalentes. Uma vez que as medidas correspondentes não serão notificadas à Comissão antes do final de Setembro de 2018, não poderão ser tidas em conta na presente decisão.

Por estas razões, os números finais do limite de 2018 podem, portanto, não estar disponíveis antes de 2018. No entanto, para manter o público informado, a Comissão atualizará os números em 2018 ou mais tarde. Essas atualizações devem levar apenas a mudanças marginais na quantidade global de licenças disponíveis a partir de 2018.

O que acontecerá com o limite após 2018?

O limite diminuirá anualmente em 1,74% da quantidade total média anual de licenças emitidas pelos Estados-Membros em 2008-2018. Em termos absolutos, isto significa que o número de licenças será reduzido anualmente em 37.435.387. Esta redução anual continuará para além de 2020, mas poderá ser objecto de revisão até 2025.

O que acontece se a UE aumentar o seu objectivo de redução de gases com efeito de estufa para 2020 de 20% para 30%?

Se a UE decidiu mudar para um objetivo de redução de 30%, o limite deveria ser revisado. A decisão de hoje reflete o objetivo de redução de 20% dos níveis de 1990 consagrado na legislação atual. Isso se traduz em um corte de 21% nas emissões das instalações do RCLE da UE até 2020 em comparação com os níveis de 2005.

A aviação está incluída na decisão?

A aviação não está incluída nesta decisão. O limite a atribuir aos operadores de aeronaves será determinado por uma decisão separada da Comissão, tal como solicitado na legislação [3], que trará a aviação para o EU ETS a partir de 2018.

Uso de créditos internacionais.

Os créditos internacionais são instrumentos financeiros que representam uma tonelada de CO2 removida ou reduzida da atmosfera como resultado de um projeto de redução de emissões.

Atualmente, os créditos internacionais são gerados através de dois mecanismos criados no âmbito do Protocolo de Quioto. Esses são:

Mecanismo de Desenvolvimento Limpo (MDL) - permitindo que os países industrializados com um compromisso de redução de gases de efeito estufa (chamados países do Anexo 1) invistam em projetos que reduzam as emissões nos países em desenvolvimento como alternativa às reduções de emissões mais caras em seus próprios países Implementação Conjunta (JI) permitindo que os países industrializados atinjam parte de seus cortes necessários nas emissões de gases de efeito estufa, pagando por projetos que reduzam as emissões em outros países industrializados.

A implementação conjunta (JI) prevê a criação de unidades de redução de emissão (ERUs), enquanto o mecanismo de desenvolvimento limpo (MDL) prevê a criação de reduções de emissão certificadas (RCE).

O Acordo de Paris estabeleceu um novo mecanismo de mercado para substituir o MDL e a JI após 2020.

Uso de créditos internacionais na ETS da UE fase 3.

Os participantes no sistema de comércio de emissões da UE (EU ETS) podem utilizar os créditos internacionais do MDL e da JI para cumprir uma parte das suas obrigações ao abrigo do RCLE da UE até 2020, sujeito a restrições qualitativas e quantitativas.

Como o maior mercado de carbono do mundo, o EU ETS é atualmente a maior fonte de demanda de créditos internacionais, tornando-se o principal motor do mercado internacional de carbono e o principal fornecedor de investimentos em energia limpa em países em desenvolvimento e economias em transição.

Restrições qualitativas.

Os créditos são aceitos de todos os tipos de projetos, exceto.

Projetos de energia nuclear projetos de florestação ou reflorestamento (LULUCF) envolvendo a destruição de gases industriais (HFC-23 e N2O).

Os créditos de projetos hidrelétricos superiores a 20 MW de capacidade instalada só podem ser aceitos sob certas condições.

Além disso, é proibido o uso de novos créditos de projetos / RCE após 2018, a menos que o projeto esteja registrado em um dos países menos desenvolvidos (PMA).

Restrições quantitativas.

A legislação da UE especifica os limites máximos até que operadores no âmbito do RCLE da UE podem utilizar créditos internacionais elegíveis para conformidade na fase 2 e na fase 3.

Os direitos de crédito internacionais iniciais para cada participante no sistema para as fases 2 e 3 combinadas são determinados pelos Estados-Membros e depois aprovados pela Comissão em conformidade com a legislação pertinente.

Os participantes no ETS da UE utilizaram 1.058 milhões de toneladas de créditos internacionais na fase 2 (2008-2018). Os direitos não utilizados foram transferidos para a fase 3 (2018-2020).

Troca de créditos.

Desde a fase 3, as RCE e as URE deixaram de ser unidades de conformidade no RCLE da UE e devem ser trocadas por subsídios da UE. Os operadores devem solicitar o intercâmbio de RCEs e URE para subsídios até seu limite de direito individual estabelecido no registro.

Os créditos emitidos em matéria de redução das emissões no primeiro período de compromisso do Protocolo de Quioto (2008-2018) tiveram de ser trocados com as licenças da UE até 31 de Março de 2018.

Utilização de créditos internacionais no RCLE da UE após 2020.

A UE tem um objectivo nacional de redução de emissões e actualmente não prevê a continuação da utilização de créditos internacionais após 2020.

No entanto, é importante que o Acordo de Paris estabeleça disposições sobre a utilização de mercados para fornecer um quadro claro e robusto para vincular os mercados de carbono no futuro.

O artigo 6º do Acordo prevê:

regras contábeis que exigem que as partes apliquem regras contábeis robustas a abordagens que envolvam o uso de "resultados de mitigação transferidos internacionalmente" para contribuições determinadas a nível nacional. Essas regras permitirão a vinculação de esquemas, garantindo a integridade dos compromissos. um mecanismo de mitigação para substituir os mecanismos existentes (como o MDL e a JI) e providenciar a certificação das reduções de emissões para uso em relação a compromissos determinados a nível nacional. Isso poderia facilitar a participação nos mercados internacionais de carbono com base em uma contribuição definida para mitigação.

Essas disposições deverão ser implementadas através da implementação de decisões nos próximos anos. Ao aproveitar a experiência, eles precisarão ser adaptados ao novo contexto no qual todos os países estão fazendo contribuições, mas há uma variedade de tipos de contribuição.

Elegibilidade de créditos internacionais.

08/11/2018 - Regulamento (UE) no 1123/2018 da Comissão sobre a determinação dos direitos creditórios internacionais 07/06/2018 - Regulamento (UE) no 550/2018 da Comissão que determina certas restrições aplicáveis ​​à utilização de créditos internacionais a partir de projectos que envolvam gases industriais Listas de crédito positivas e negativas Lista positiva geral Lista negativa geral Nota explicativa sobre as listas de crédito (47 kB) Regras harmonizadas relativas aos grandes projectos de represas hidrelétricas: 27/10/2004 - Directiva 2004/101 / CE do Parlamento Europeu e do Conselho que altera Directiva 2003/87 / CE relativa aos mecanismos de projecto do Protocolo de Quioto Orientações sobre a aplicação do artigo 11.º, alínea b), 6 da Directiva 2004/101 / CE (55 kB) Questionário de conformidade do projecto (75 kB)

Um novo mecanismo de mercado / reformando o CDM / JI.

Estudos.

Abra todas as perguntas.

Elegibilidade.

Posso usar créditos internacionais para conformidade na Fase 3 do EU ETS? Quais?

Sim, sujeito às restrições quantitativas e qualitativas. De fato, isso significa que, a partir de 1 de abril de 2018, somente os créditos internacionais de projetos registrados em um PMA pós 2018 são elegíveis para uso no ETS da UE, com exceção de créditos de projetos de energia nuclear, projetos de arborização ou reflorestamento (LULUCF) e projetos envolvendo destruição de gases industriais (HFC-23 e N2O). Os créditos de projetos hidrelétricos superiores a 20 MW de capacidade instalada só podem ser aceitos sob certas condições. Além disso, os créditos internacionais devem ser trocados por subsídios da UE antes de poderem ser utilizados para conformidade no RCLE-UE. Os créditos emitidos em relação à redução das emissões no primeiro período de compromisso do Protocolo de Quioto (2008-2018) tiveram que ser trocados com as licenças da UE no prazo de 31 de março de 2018.

O que acontece se um país perder o status de País Menos Desenvolvido (PMA)?

Um projeto em um PMA que está incluído na lista do LDC da ONU quando o projeto é registrado pela Diretoria Executiva do MDL pode continuar a gerar créditos até 2020, seja o que for que aconteça com a lista do LDC da ONU.

Como as restrições qualitativas são controladas e controladas?

As restrições qualitativas são controladas e controladas através da introdução de verificações automáticas no registro da União, com base nas informações referentes ao ID do projeto e ao identificador do período de compromisso dos créditos internacionais relevantes.

Existem propostas adicionais em consideração para aplicar restrição qualitativa a qualquer tipo de projeto específico?

A Directiva EU ETS prevê a introdução de restrições de utilização como parte das disposições de execução de créditos que, de outro modo, podem ser utilizados durante a Fase 3 do RCLE UE. Embora a legislação permita a aplicação de novas restrições de uso, a Comissão Europeia não está considerando restrições de uso adicionais para a Fase 3. No entanto, o objetivo doméstico da UE 2030 não prevê a continuação do uso de créditos internacionais após 2020.

Troca de créditos internacionais para subsídios.

Como funciona o intercâmbio?

O processo para troca é descrito detalhadamente no Regulamento do Registo (artigo 59-61). Um representante de conta pode solicitar uma troca de créditos internacionais elegíveis de uma conta de depósito de operador ou de uma conta de depósito de operador de aeronave no registro da União. O pedido de troca deve ser aprovado por uma segunda pessoa nomeada como representante de conta adicional ou, se nenhum representante de conta adicional for nomeado para a conta, por um representante de segunda conta diferente do que iniciou o pedido. O processo de troca é automatizado: depois que os créditos internacionais são transferidos para uma conta central, um número equivalente de subsídios será transferido automaticamente para a conta da qual a troca foi solicitada.

Um operador pode solicitar tantas trocas de créditos para subsídios quanto necessário, desde que não exceda o seu crédito internacional. Os quadros internacionais de direitos creditórios contêm os direitos calculados para cada instalação e operador de aeronave pelas estatísticas dos membros de acordo com o regulamento sobre os direitos de crédito internacionais. A troca pode ocorrer a qualquer momento durante o ano civil. Uma vez que os créditos são trocados por subsídios, eles não podem ser trocados de volta aos créditos.

Mercado internacional de carbono.

Os mercados internacionais de carbono podem desempenhar um papel fundamental na redução das emissões globais de gases de efeito estufa de forma econômica.

O número de sistemas de comércio de emissões em todo o mundo está aumentando. Além do sistema de comércio de emissões da UE (EU ETS), sistemas nacionais ou subnacionais já estão em operação ou em desenvolvimento no Canadá, China, Japão, Nova Zelândia, Coréia do Sul, Suíça e Estados Unidos.

Mercados de carbono no Acordo de Paris.

O Acordo de Paris prevê uma base robusta e ambiciosa para a utilização dos mercados internacionais e reforça os objectivos internacionais, a transparência ea responsabilidade das Partes.

Reconhecendo a importância dos mercados internacionais de carbono, o artigo 6º do acordo.

permite que as Partes usem o comércio internacional de licenças de emissão para ajudar a alcançar metas de redução de emissões estabelece um quadro para regras contábeis robustas comuns e.

cria um mecanismo de mercado novo e mais ambicioso.

Cooperação bilateral.

Em 2018, a Comissão Européia iniciou um projeto de 3 anos em estreita cooperação com a China para apoiar o projeto e a implementação do comércio de emissões na China.

O projeto fornece assistência técnica para capacitação. Apoia os 7 sistemas piloto regionais já criados e o estabelecimento de um sistema de comércio de emissões a nível nacional.

Na Declaração Conjunta UE-China sobre as Alterações Climáticas adoptada na Cimeira UE-China de 29 de Junho de 2018, a UE e a China concordaram em "reforçar a cooperação bilateral existente nos mercados de carbono, com base na expansão da UE-China em curso projeto de capacitação de comércio de licenças de emissão e trabalho em conjunto nos próximos anos sobre as questões relacionadas ao comércio de emissões de carbono ".

Neste contexto, a Comissão e a China estão a considerar novas actividades.

O sistema coreano de comércio de emissões (KETS), lançado em 2018, cobre cerca de 66% das emissões totais de gases de efeito estufa da Coréia. É o primeiro sistema obrigatório de comércio de emissões entre países que não pertencem ao Anexo I ao abrigo da UNFCCC.

O KETS poderia desencadear a expansão do comércio de emissões entre economias emergentes e países em desenvolvimento.

A Comissão Europeia apoia a Coreia através de um projecto de assistência técnica centrado na construção da capacidade necessária para implementar o KETS.

Cooperação multilateral.

A Comissão Europeia é membro fundador da International Carbon Action Partnership (ICAP), que reúne países e regiões com sistemas obrigatórios de cap-and-trade. O ICAP fornece um fórum para compartilhar experiências e conhecimentos e organiza cursos de treinamento regulares.

A Comissão também apoia o desenvolvimento de mercados domésticos de carbono através da Parceria para a Preparação do Mercado (PMR). O PMR é uma plataforma para o intercâmbio de experiências em instrumentos do mercado do carbono e auxilia alguns países em preparar e implementar esses países.

Ligação com outros sistemas de cap-and-trade.

Vincular sistemas de comércio de emissões compatíveis entre si permite que os participantes em um sistema usem unidades de outro sistema para fins de conformidade.

Linking oferece vários benefícios potenciais, incluindo:

reduzindo o custo de cortar as emissões aumentando a liquidez do mercado, tornando o preço do carbono mais estável nivelando o campo de jogo internacional, harmonizando os preços do carbono em todas as jurisdições e apoiando a cooperação global em mudanças climáticas.

A legislação do EU ETS prevê a possibilidade de vincular o RCLE da UE com outros sistemas de comércio de emissões compatíveis no mundo a nível nacional ou regional.

As condições de ligação incluem:

compatibilidade do sistema (os sistemas têm a mesma integridade ambiental básica e uma tonelada de CO 2 em um sistema é uma tonelada no outro sistema) a natureza obrigatória do sistema e a existência de um limite absoluto nas emissões.

A UE e a Suíça assinaram um acordo para vincular seus sistemas. Uma vez que o acordo entrou em vigor, a ligação resultaria no reconhecimento mútuo das licenças de emissão da UE e da Suíça. A Suíça manteria um sistema separado do ETS da UE.

A UE e a Austrália também consideraram a possibilidade de vincular seus sistemas. No entanto, devido à revogação do sistema australiano em 2018, as negociações de ligação não foram prosseguidas.

Elegibilidade de créditos internacionais.

08/11/2018 - Regulamento (UE) no 1123/2018 da Comissão sobre a determinação dos direitos creditórios internacionais 07/06/2018 - Regulamento (UE) no 550/2018 da Comissão que determina certas restrições aplicáveis ​​à utilização de créditos internacionais a partir de projectos que envolvam gases industriais Listas de crédito positivas e negativas Lista positiva geral Lista negativa geral Nota explicativa sobre as listas de crédito Regras harmonizadas relativas aos grandes projectos de represas hidrelétricas: 27/10/2004 - Directiva 2004/101 / CE do Parlamento Europeu e do Conselho que altera a Directiva 2003/87 / CE no que diz respeito aos mecanismos de projecto do Protocolo de Quioto. Orientações sobre a aplicação do artigo 11 (b) 6 da Directiva 2004/101 / CE Questionário de conformidade do projecto.

Ligação com outros sistemas de comércio de emissões de gases com efeito de estufa.

Incentivar novos mecanismos de mercado.

31/08/2018 - Estudo: Opções de design para mecanismos setoriais de mercado de carbono Comunicações da UE sobre o novo mecanismo de mercado 11/04/2018 - Opiniões sobre o novo mecanismo baseado no mercado 13/08/2018 - Adenda 26/05/2018 - COM ( 2018) 265 - Comunicação: Análise de opções para ultrapassar 20% de redução de emissões de gases de efeito estufa e avaliação do risco de vazamento de carbono 09/03/2018 - COM (2018) 86 - Comunicação: Política climática internacional pós-estudos de Copenhague.

Abra todas as perguntas.

Perguntas & amp; respostas sobre a implementação de regras relativas à elegibilidade de créditos internacionais no ETS da UE (10/2018)

Quando o novo Regulamento do Registro (Regulamento nº 389/2018) entrou em vigor?

O Regulamento n. º 389/2018 entrou em vigor em 4 de maio de 2018.

O que os objectivos de emissão quantificados "juridicamente vinculativos" de 2018 a 2020 significam, no contexto do n. º 2 do artigo 58.º do novo Regulamento do Registo?

O termo "juridicamente vinculativo" refere-se à entrada em vigor da emenda ao Protocolo de Kyoto de acordo com o direito internacional (ou seja, uma vez que três quartos das Partes no Protocolo de Kyoto depositaram instrumentos de ratificação).

Qual é o impacto do n. º 2 do artigo 58.º nos projectos das Partes do Anexo B em países terceiros (ou seja, Partes não pertencentes à UE)?

Nos termos do n. º 2 do artigo 58.º do novo Regulamento do Registo, as URE emitidas após 31 de Dezembro de 2018 no que se refere às reduções de emissões ocorridas até 31 de Dezembro de 2018 a partir de Partes do Anexo B não pertencentes à UE só podem ser mantidas em contas ETS no Registo da União providenciou que:

A alteração ao Protocolo de Quioto, incluindo o compromisso de tal Parte, entrou em vigor OU A Parte depositou um instrumento de ratificação OU Os créditos são emitidos na faixa 2 OU Onde a emissão da faixa 2 não é possível, a data de redução (pré - 2018) é certificado por um AIE.

Que outros créditos não podem ser realizados nas contas ETS no Registro da União?

As participações em contas do RCLE no registo da União estão harmonizadas em conformidade com o Anexo I do Regulamento do Registo. Deve notar-se que, para as contas de depósito de pessoas nos Registros do Protocolo de Quioto dos Estados-Membros, os Estados-Membros podem determinar as explorações das unidades. As contas de retenção de pessoas nos Registros do Protocolo de Quioto dos Estados Membros podem ser identificadas pelo seu 121 tipo de conta (por exemplo, PT-121-1234567 para uma conta de depósito de pessoas na parte portuguesa do Registro da União).

Se um crédito não pode ser mantido em uma conta ETS no Registro da União de acordo com o Anexo I, onde pode ser realizada no Sistema de Registro?

Estes créditos podem ser realizados nos Registros do Protocolo de Quioto dos Estados Membros, parte do Registro da União, em contas de depósito pessoal, se permitido pelo Estado-Membro.

Como o usuário pode saber se um crédito é elegível para troca e exploração em uma conta ETS, já que os números de série não estão visíveis no Registro da União?

O próprio aplicativo do Registro irá marcar os créditos internacionais como elegíveis ou inelegíveis. Esse status será claramente visível no aplicativo. Nesta base, o titular da conta poderá distinguir os créditos elegíveis mantidos em uma conta KP daqueles que estão pendentes de elegibilidade (porque são necessárias etapas adicionais) ou inelegíveis (de acordo com a legislação relevante).

Existe uma data limite para o uso de créditos internacionais emitidos para o primeiro período de compromisso do Protocolo de Quioto (créditos CP1)?

Sim, em conformidade com o artigo 60 do Regulamento do Registo, os créditos emitidos em relação às reduções de emissões ocorridas no primeiro período de compromisso do Protocolo de Quioto podem ser trocados até 31 de março de 2018. Estes créditos não podem ser trocados após essa data, mesmo que sejam "transferido" ou depositado no segundo período de compromisso do Protocolo de Quioto. Após 31 de março de 2018, esses créditos serão marcados como "não elegíveis" no Registro da União.

Como os titulares de créditos internacionais podem identificar se os seus créditos devem ser trocados antes de 31 de março de 2018, de acordo com o artigo 60 do Regulamento do Registro?

O número de série de cada crédito contém tanto o período de compromisso original (o período de compromisso para o qual a unidade foi emitida) quanto o período de compromisso aplicável (o período em que a unidade pode ser retirada). O período de compromisso original é visível no Registro da União. Após 31 de março de 2018, os créditos internacionais com um período de compromisso original de 1 (ou seja, as unidades emitidas para reduções CP1) não serão mais elegíveis para troca. Ou seja, após 31 de março de 2018, esses créditos serão marcados como "inelegíveis" no Registro da União.

É importante notar que, mesmo que estes créditos sejam "transferidos" ou depositados entre os períodos de compromisso do Protocolo de Quioto, o período de compromisso original permanecerá inalterado e esses créditos continuarão a ser inelegíveis para troca no ETS da UE.

E se os créditos internacionais para os quais as participações do ETS são proibidas de acordo com o Anexo I são mantidos em contas ETS no Registro da União após a entrada em vigor do Regulamento do Registo ou após 31 de março de 2018 (para créditos CP1)?

International credits issued after the respective deadlines set out in Article 58 and Article 60 of the Registry Regulation have become ineligible following the entry into force of the Regulation or, for CP1 units, after 31 March 2018.

In accordance with Article 58(3), and Article 115, the so-called "cleaning" operation, the National Administrators have requested the account holders of these credits to transfer them to an appropriate Kyoto Protocol account.

A similar operation will be undertaken after 31 March 2018 to implement Article 60 of the Registry Regulation in respect of CP1 credits.

When does the exchange of international credits for allowances take place?

The exchange can take place at any point during the calendar year.

The international credit entitlement tables contain entitlements calculated for each installation and aircraft operator by Member States in accordance with the Regulation on international credit entitlements (RICE).

How will the exchange work?

The process for the exchange is described in detail in the Registry Regulation (Articles 59-61). An account representative can request an exchange of eligible international credits from an operator holding account or an aircraft operator holding account in the Union registry. The exchange request needs to be approved by a second person nominated as additional account representative or, if no additional account representative is nominated for the account, by a second account representative different than the one who initiated the request. The exchange process is automated: after the international credits are transferred to a central account, an equivalent number of allowances will be transferred automatically to the account from which the exchange was requested.

An operator can request as many exchanges of credits for allowances as needed, provided it does not exceed its international credit entitlement. Once credits are exchanged for allowances, they cannot be exchanged back into credits.

Is the status of the credit as marked in the registry (e. g. eligible or ineligible ) fixed or subject to change?

The information in the Union Registry regarding the eligibility of international credits is subject to change over time based on the best information available.

If the credit is a CER, it will be important to check the effective registration date of the project. If the host Party is not an LDC and the effective registration date is after 2018, CERs from the project will not be eligible for exchange in the EU ETS in accordance with the provisions of Article 11a(8) of the EU ETS Directive.

If the credit is a CER and the effective registration date is before 2018 , it is also important to check that it is not ineligible in phase 3 of the EU ETS in accordance with Regulation 550/2018 (e. g. it is not an HFC-23 project nor an N2O-adipic acid project).

If the credit is a track 1 ERU issued by a non-EU Party before 2018 , the information in the Union Registry is, to our knowledge, accurate with respect to the provisions in the EU ETS Directive and the Registry Regulation.

Likewise, for CERs, track 2 ERUs and ERUs issued by an EU Member State the information in the Union Registry is, to our knowledge, accurate with respect to the provisions in the EU ETS Directive and the Registry Regulation.

A credit in my account is marked as ineligible but, it should be eligible International Credit Holdings (ICH). How should I proceed?

In the first instance, check the eligibility lists published on our website.

If the credit has been incorrectly marked based on the published criteria, please contact your National Administrator.

If the ERU was issued after 31 December 2018 , the status of the credit will be updated upon successful completion of the certification referred to in Q16.

In all cases, if a change of status is warranted, the status of a credit will be changed the day after the information is updated in the Union Registry.

If my credit is marked as pending/ineligible , what is the impact?

The immediate impact is that such credits cannot be transferred to another ETS account in the Union Registry. These credits can, however, be transferred to a KP account.

After a "cleaning" operation referred to in Article 58 (3) (see Q9) has been completed, it will no longer be possible to hold credits marked as ineligible in EU ETS accounts and these credits will need to be moved accordingly.

When will the ineligible credits need to be moved out of ETS accounts in the Union Registry (in accordance with Article 58(3))?

An initial operation has already taken place and your national administrator should have already contacted account representatives. A further "cleaning" operation will take place to manage units issued in the first commitment period of the Kyoto Protocol. This operation is foreseen after the deadline for the exchange of the credits, 31 March 2018, in accordance with Article 60 of the Regulation 389/2018.

When will market participants be informed about the certification required under Article 58(2)?

Guidance on the certification which applies in accordance with Article 58(2) of the Registry Regulation is available.

Perguntas & amp; answers on use of international credits in the third trading phase of the EU ETS (January 2018)

Terminologia.

Least Developed Countries (LDCs) list: As there had been no international agreement at the end of 2018, nor had there been any EU agreements with third countries, article 11a(4-5) provides a default situation of prohibition on using new-project CERs beyond 2018, unless they are from LDCs or can be swapped for CERs from LDCs. What happens if a country loses its LDC status: if the project is at validation stage, if the project is registered, if CERs have already been issued?

The guidance on the DG CLIMA webpage explains that "A project in an LDC that is included in the UN list when the project is registered by the CDM Executive Board may continue to generate credits up to 2020, whatever happens to the list.

Crediting period renewal: Does the registration date pertaining to 'projects that were registered before 2018' referred to in Article 11a(2-4) correspond to the start date of the first crediting period of the project, or to the start date of any subsequent crediting period?

The start date refers to the start date of the first crediting period. Hence credits from projects that were registered prior to 2018 and that have their crediting period renewed after 2018 will continue to be usable (in the absence of use restrictions).

Date of registration: What will be the applicable cut-off date for the registration of CDM projects for being able to produce EU-ETS-eligible CERs post 2018.

Subject to no other quality restrictions, credits from projects registered before 2018 will be eligible for use in the EU ETS. The date of registration shall be the registration date determined by the EB, including the effective date of registration in accordance with Decision 3/CMP.6 i. e. "the date on which a complete request for registration has been submitted by the designated operational entity where the project activity has been registered automatically".

Implementation of provisions.

Swapping process: As from 2018, recognised international credits must be exchanged into (phase 3) allowances before surrendering them for compliance.

a) What are the modalities for this swapping process? Who will do it, when will it start?

The exchange of credits will start from 1 January 2018 onwards or as soon as a forthcoming revision of the Registry Regulation has been adopted, whatever is latest. The modalities will be developed in this revision. Only "operators" as defined in the ETS Directive can exchange CERs/ERUs for allowances.

b) Will this be an instant process or would there be a delay in receiving an allowance in return for a CER on the same user account?

Details in this regard will be determined in a forthcoming amendment of the registry regulation.

c) Can a request for a swap be refused on grounds other than the credit not being a compliance credit and if yes under which circumstances?

Details in this regard will be determined in a forthcoming amendment of the Registry Regulation. Given that the exchange route is only for operators, an exchange will be declined if an operator has exhausted the limit of its entitlements for exchanging credits, as reflected in articles 11.a(2-4) and (8) of the ETS Directive.

d) Can swapping be done at any time during the year, or do operators have to wait until the surrender deadline?

Details in this regard will be determined in a forthcoming amendment of the Registry Regulation. The Commission envisages for the exchange to take place throughout the calendar year and not limited to the annual compliance date. The competent authority will make the exchange on request from operators.

Quantitative limits: Article 11a(8) provides for options whereby operators would be able to use additional volumes of credits beyond the quantity they were allowed to use between 2008 and 2018. What are the steps and timeline of the comitology process to 'specify the exact percentages' of additional allowed credit volumes?

The ETS Directive does not specify the time by which these volumes should be determined. The Commission foresees that the necessary rules should be in place before credits are used in respect of phase 3.

UNFCCC carry-over rules: The Marrakesh rules (Decision 13/CMP.1) state that Parties are allowed to carry over CERs and ERUs 2.5% of their initial Kyoto AAUs to the potential subsequent commitment period. This amount will be confirmed after the true up period in 2018.

a) Can a compliance company, or a non-compliance actor carry over international credits "as credits" to the post-2018 period? In other words, will it be possible to bank CERs/ERUs?

For phase 3, credits can only be used for compliance in the EU ETS if exchanged for phase 3 allowances. This exchange of international credits with a first commitment period identifier into allowances will only be allowed until March 2018, which is before the end of the Kyoto Protocol's true-up period. On the difficulties of banking under the Kyoto protocol of selective CDM CP1 into the future, see chapter 6.2.4. 'Transition and predictability' of the 2008 impact assessment accompanying the revision of the EU ETS.

b) Are all EU ETS account holders able to carry over credits within limits?

Under the EU ETS, all compliance buyers (i. e. not all account holders) can exchange unused credits within the limits provided in article 11a and this exchange is guaranteed until the end of March 2018.

Future policy development.

Bilateral agreements:

a) Given the continuing absence of an international agreement, what action has the Commission taken to negotiate bilateral agreements with major host countries?

The Commission envisages the primary focus of potential bilateral agreements to be on creating demand for credits from new market mechanisms and to pilot the establishment of such new market mechanisms. The Commission contributes and actively participates in the World Bank's Programme for Market Readiness to promote such initiatives.

b) Bilateral agreements: How can interested stakeholders contribute to the set-up and implementation of bilateral agreements?

Stakeholders are encouraged to reach out to developing countries to support and explain the EU's position on the future of the carbon market, share lessons learned from emissions trading, Joint Implementation, Activities Implemented Jointly, and the CDM and explore areas for testing new market mechanisms.

c) Bilateral agreements: Will bilateral agreements be broad in nature (e. g. for all sectors in the host country) or targeted to specific sectors?

EU legislation is very open with regard to the scope of bilateral agreements that might be reached.

Process for qualitative restrictions: From 1 January 2018, measures may be applied to restrict 'the use of specific credits from project types' according to article 11a(9).

a) What is the definition of 'type'? What is the definition of 'specific credits'?

Under 'type' the Commission understands credits that were generated using one or several methodologies approved by the UNFCCC CDM Executive Board and JI Supervisory Committee. 'Specific credits' could refer to all credits under a project type or credits from a project type generated in a set of countries.

b) Have any such qualitative restrictions been adopted so far?

From the start of the EU ETS in 2005 full use restrictions have already been applied in the EU ETS to CERs from projects at nuclear facilities and from projects in agriculture and forestry (so-called LULUCF). As of 1 January 2018 CERs and ERUs from projects involving the destruction of trifluoromethane (HFC-23) and nitrous oxide (N2O) emissions from adipic acid production will be prohibited in the EU ETS. An exception is made until 30 April 2018 for destruction from existing projects that is credited before 1 January 2018, for compliance with 2018 commitments.

c) Are there further proposals under consideration to apply qualitative restrictions to any specific project type?

The revised ETS Directive provides for use restrictions to be introduced as part of the implementing provisions for credits which are otherwise usable during phase 3 of the EU ETS, running from 2018 to 2020. While the legislation allows putting in place further use restrictions adding to those adopted in early 2018, the European Commission is currently not considering any additional use restrictions.

d) How will qualitative restrictions be tracked and controlled?

Qualitative restrictions will be tracked and controlled through the introduction of automatic checks in the Union registry, based on the information regarding the project ID and the commitment period identifier of relevant international credits.

e) Is a positive list of unrestricted credits possible?

EU legislation does not foresee such a list.

f) Type of qualitative restrictions: What type of restrictions could be invoked according to article 11a(9)?

The Directive does not limit the types of restrictions that can be introduced. These will depend on project-type, economic, environmental, strategic and administrative circumstances.

Programme of Activities (PoAs): According to Article 11a(2) credits from projects registered pre-2018 are eligible for compliance in the EU ETS.

a) Does this imply that CDM Project Activities (CPAs) included after 2018 to PoAs registered pre-2018 are also eligible?

Article 11.a(3) of the EU ETS Directive states that "…competent authorities shall allow operators to exchange CERs and ERUs from projects that were registered before 2018 issued in respect of emission reductions from 2018 onwards for allowances valid from 2018 onwards". This wording would indicate that the moment of registration of a project is to be taken as a cut-off date for determining whether future CERs would be eligible for use in the EU ETS. A PoA is only registered once and CPAs are added to a PoA without a separate registration. It is therefore the Commission's interpretation that CERs from CPAs added after 2018 to a PoA registered prior to 2018 can be used for compliance in the EU ETS.

The Commission is, however, also aware that this interpretation of article 11.a(3) may increase the supply of CERs from non-LDCs. This contradicts the spirit of the Directive to allow only CERs from projects registered after 2018, if they come from LDCs. The Commission will therefore continue to monitor the evolution of PoAs, including their impact on the development of new sectoral mechanisms. The Commission notes that the Directive allows the Commission to propose appropriate regulatory measures under article 11.a(9) of the EU ETS, if the situation would require this.

b) Would restrictions (if adopted according to article 11a(9)) be applicable to PoAs?

Any use restrictions for specific credits from project-types agreed under article 11.a(9) would also be applicable to PoAs.

c) Will CERs from CPAs in LDCs be EU ETS eligible, if the PoA (no matter date of registration) also includes non-LDCs (so called cross country PoAs)?

This will depend on the possibility to clearly distinguish the country of origin of each CER, and whether such a filter can easily be introduced in the CITL. If this is the case, the Commission sees no objections to this.

JI projects registered before 2018: Article 11a(3) allows exchange of credits from projects registered before 2018 issued in respect of emission reductions from 2018 onwards. This applies both to CERs and ERUs. However, in the case of ERUs, issuance and transfer by the Host Party is subject to prior conversion of AAUs. This means that the absence of a second commitment period under the Kyoto Protocol would imply no continuation of JI projects after 2018. Has it been considered how to implement Article 11a(3) with regard to ERUs, in the absence of a second commitment period under the Kyoto Protocol: Continuation of JI project baselines beyond 2018 via a bilateral agreement – would this be a bilateral agreement signed between the EU as a block and various host countries to allow continuation of projects within that country?

a) Continuation of JI project baselines beyond 2018 via a bilateral agreement – would this be a bilateral agreement signed between the EU as a block and various host countries to allow continuation of projects within that country?

As explained in relation to question 6, bilateral agreements are envisaged to focus on the promotion of sectoral market mechanisms.

b) In the event that projects fall outside the EU ETS: Can such projects use commitment period 1 (CP1) AAUs to back ERUs generated January 2018 – March 2018?

The Commission considers that this is not in line with the Kyoto Protocol, according to which AAUs have been created in respect of emissions from 2008 to 2018 (CP1). In line with the principle of the Kyoto Protocol, the continuation of JI after 2018 is subject to new quantified emission targets being in place (CP2). This is also referred to in the recitals of the EU legislation (recital 28 of Directive 2009/29/EC). Using CP1 AAUs for backing ERUs generated between January 2018 and March 2018 is opposed to this, as it would allow the conversion of CP1 AAUs (not usable in the EU ETS) into a CP1 ERUs on behalf of post 2018 reductions (usable in the EU ETS). This would mix up the accounting system under which these units are created. Also, the UNFCCC Secretariat's advice on CDM accounting goes in the opposite direction, thereby creating an inconsistency that should not be supported. The CDM Executive Board have advised that "CERs may be used by Annex I Parties in complying with their emission targets for the first commitment period, as long as they have been issued for emission reductions or removals taking place up to the end of 2018". If nothing else, the continuation of crediting CDM projects is less of an issue as these projects do not impact on the inventories of Annex I Parties.

Sectoral crediting / trading: The EU intends to develop new mechanisms to scale up the use of carbon markets for climate finance and to provide better incentives for own mitigation action in developing countries.

a) Has the Commission assessed the actual possibility of sectoral mechanisms to meet demand for international credits in the EU ETS in the near future?

Under existing commitments there is currently no shortage of supply to accommodate the maximum possible EU demand for international credits. In fact, one of the main challenges for the introduction of sectoral mechanisms is to ensure sufficient demand for such credits. The speed by which new mechanisms can be implemented will also depend on other factors, including progress made in the international negotiation on their establishment, the geographical and sectoral scope of the first application, and the level of interest from developing countries.

b) How does the Commission intend to address possible disruptions in the market (due to the combined effect of possible CDM restrictions and new crediting mechanisms)?

The Commission does not share the view that the market would be disrupted by a (temporary) shortage of supply of international credits. The flexible nature of the EU ETS design would simply result in the allowance price incentivising more reductions in installations covered by the EU ETS and a reduced reliance on international credits for compliance purposes.

c) Does the Commission have plans to consult with stakeholders on the practical implementation of sectoral crediting?

No specific stakeholder consultation is planned on this issue, as the Commission regularly interacts with interested stakeholders and always welcomes ideas and input from stakeholders on practical implementation of sectoral crediting.

d) How could the private sector get involved with sectoral crediting?

Implementation of sectoral crediting will require a considerably more important role of the host country governments. They offer host governments to implement sectoral policies that achieve structural transformations of targeted sectors. The role of the private sector, in particular current project developers and consultants, is likely to change significantly. Instead of directly receiving credits from an international body as it is the case with CDM, project developers will need to interact with national governments. This provides for a more proactive role of national governments to introduce appropriate regulatory frameworks for blending of public and private sources of finance. The incentives for the private sector to invest in GHG emissions reductions will depend on the chosen policy mix, and will be country-specific. The proactive interaction between developing country host governments and the private sector on how to best put an incentive structure in place to attract private capital should be encouraged.

e) Could the emerging international REDD+ mechanism qualify as a sectoral mechanism?

No, for reasons of liability, non-permanence and capacity to monitor emissions with sufficient level of accuracy credits from a possible REDD+ mechanism will not be considered for compliance use in the EU ETS before the end of phase 3.

Stepping up the EU reduction target: The CDM pipeline would imply that CERs from projects registered pre-2018 could be sufficient to cover the demand from the current CER/ERU import limits in phases two and three.

a) Could potential rules on credit eligibility (except where bilateral agreements) be relaxed in a move beyond the current 20% reduction target?

The impact assessment accompanying the introduction of use restrictions on industrial gas credits in the EU ETS has identified significant economic and environmental shortcomings of such credits. These would not disappear with more stringent EU targets. Therefore there are no reasons to reconsider the ban on such credits. But more generally, under a stricter cap strategic decisions will have to be made whether to allow for more credits, and if so which types of credits this would be (new market mechanisms, CDM, etc.).

b) In case of a 30% reduction target with increased access to credits, what would be the share of use of these credits between ETS and non ETS sectors.

This would have to be determined through an appropriate impact assessment, if and when such an increased target is politically decided.

Is the adoption of a 2nd commitment period under the Kyoto Protocol an " international agreement on climate change" in the sense of Art. 11a(7) of the EU ETS Directive and Art. 5(3) of the Effort Sharing Decision?

The ETS Directive (Directive 2009/29) and the Effort Sharing Decision (Decision 406/2009) make clear that the term "international agreement on climate change" refers to the "future" agreement that was expected to be reached at COP15 in Copenhagen and that would apply for the period "beyond 2018". This, however, did not happen in Copenhagen.

Negotiations have continued ever since, resulting in the decision in Durban in December 2018 to "launch a process to develop a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties", to be adopted by 2018 and to come into effect and be implemented from 2020.

The adoption of a second commitment period of the Kyoto Protocol without a legally binding agreement for the period beyond 2018 under which other developed countries commit themselves to comparable emission reductions and economically more advanced developing countries commit themselves to contributing adequately according to their responsibilities and capabilities is therefore not an international agreement as referred to in Article 11a(7) of the EU ETS Directive and Article 5(3)of the Effort Sharing Decision.

Would reaching an international agreement pursuant to Article 11a(7) of the EU ETS Directive and Article 5(3) of the Effort Sharing Decision (ESD) reopen the EU ETS and ESD to CDM credits from projects registered post-2018 other than in Least Developed Countries (LDCs)? What would an agreement mean for eligibility of credits from LDCs?

Articles 11a(7) of the EU ETS Directive and Article 5(3) of the ESD limit the acceptance of CDM credits to those from countries that have ratified the new "international agreement on climate change". They do not "broaden" access in any way.

Thus, once an international agreement pursuant to Article 11a(7) of the EU ETS Directive and Article 5(3) of the ESD is reached, the limitation to CDM credits from new projects from the LDCs for the period starting in 2018 continues to apply. Any broadening of the eligibility criteria to allow new credits from other countries, with the exception of credits used under Article 11a(5), would require an amendment of the ETS Directive. Credits from projects in LDCs and other countries started before 2018 will only be accepted if they originate from countries that have ratified the agreement.

How many international credits will be allowed in the EU ETS after 2020?

The magnitude and nature of international credits for which a demand may be created in the EU ETS from 2021 onwards is yet to be defined. The European Parliament and Council would, on the basis of a proposal from the Commission, decide how much demand the EU should create for international credits and of what types at a later stage and in the light of various factors, including the level of ambition of countries in the post-2020 climate regime.

Perguntas & amp; answers on use restrictions for certain industrial gas credits as of 2018 (November 2018)

What types of credits are restricted, what kind of restriction will apply and when will the use restrictions enter into force?

The use of international credits from the Clean Development Mechanism (CDM) and Joint Implementation (JI) from projects involving the destruction of trifluoromethane (HFC-23) and nitrous oxide (N2O) from adipic acid production in the EU Emission Trading System (EU ETS) will be prohibited as of 1 January 2018. An exception is made until 30 April 2018 for projects taking place before 1 January 2018, complying with 2018 commitments.

Are these the first use restrictions applied in the EU ETS?

No. Full use restrictions have already been applied in the EU ETS to credits generated from projects at nuclear facilities and from credits generated from agriculture and forestry (so-called LULUCF) activities.

Why were use restrictions focused on industrial gas credits?

There are a number of reasons for adopting use restrictions on some industrial gas projects. The acceptance of credits from industrial gas projects has been controversial for some time. Certain gases have a very high global warming potential and abatement is very cheap. This can create huge financial rewards for project developers. The main concerns about these projects are:

a) Additionality – is production and subsequent destruction of the gas higher than what would have happened without a CDM project?

HFC-23 is produced as a by-product during production of another greenhouse gas, HCFC-22, principally in air conditioners and refrigerators. HFC-22 is a powerful ozone depleting substance, which is covered by the Montreal Protocol. Crediting the abatement of HFC-23 can create a perverse incentive to produce more HCFC-22 than would have happened without the CDM, and consequently produce credits that are not additional.

Also, the EU considers that cheap emission reductions in developing countries, such as those from certain industrial gas projects, should not be realised through the carbon market, but instead should be the responsibility of developing countries as part of their own efforts. Alternatively, these reductions could still be in part or fully funded by developed countries based on the actual costs for their abatement.

b) Obstacles to development of sectoral crediting mechanisms.

Due to the big quantity of cheap credits available from HFC-23 and N2O from adipic acid production, there is insufficient demand for credits from sectoral mechanisms. The EU favours these mechanisms above HFC-23 and N2O projects, because they stimulate domestic climate policy action in developing countries across broad segments of the economy, generate higher volume of credits at lower transaction costs, facilitate a move to multi-sectoral cap-and-trade system, and scale up additional international carbon finance flows to Developing countries.

c) Obstacles to phase out of gases under the Montreal Protocol.

The current incentive structures for HFC-23 undermine attempts under the Montreal Protocol to accelerate the phase-out of HCFC-22 for non-feedstock use, and to consider financing the destruction of HFC-23 on an via contributions to the Multilateral Fund.

d) Imbalance in the geographical distribution of projects.

The dominance of industrial gas projects distorts the geographical distribution of projects under the Kyoto Protocol's flexible mechanisms in favour of some advanced developing economies. The EU has called for a better geographical distribution of projects in the CDM, in particular for Least Developed Countries (LDCs). Use restrictions can encourage investment in projects in LDCs.

How could stakeholders contribute?

During the preparations of the Commission proposal and accompanying impact assessment, stakeholders were invited to submit their views on the design of use restrictions for industrial gas credits. Many stakeholders responded and provided valuable written input.

How can use restrictions improve value for money?

Revenues from the sale of HFC-23 credits in the EU ETS represent up to 78 times the initial capital investment and operational costs of these projects. In other words, the rates of return of these projects are excessive. These projects are not reducing global emissions in an efficient manner. The EU considers that cheap emission reductions, such as those from industrial gas projects, should not be done through the carbon market, but instead should be the responsibility of developing countries as part of their appropriate own action to keep global warming below 2 degrees Celsius.

Which countries are the main suppliers of industrial gas credits?

80% of HFC-23 credits and 60% of N2O credits under the CDM come from China. The remainder of these projects are mostly generated in India and some advanced developing countries (some of them OECD-members). Use restrictions are therefore fully in line with an increasing focus of the CDM on LDCs. The EU considers that OECD countries, such as South Korea and Mexico, should contribute to mitigation through measures such as sectoral market mechanisms or emissions trading, rather than through CDM projects.

Are the use restrictions "retroactive"?

No. The EU ETS Directive (2009/29/EC) allows for restricting the use in the EU ETS of credits from certain project types. This by no means affects the issuance of units, which is managed by the CDM Executive Board. The Directive foresees a notice period of 6 months to 3 years for the application of restrictions from the time they are formally adopted in order to allow sufficient time for market participants to adapt.

What will be the market impacts of these use restrictions?

The EU considers there will be enough credits available from the 3300 other projects (non HFC-23, non-adipic acid N2O) registered so far to supply the EU ETS up to the limit allowed over the next 10 years, even without any new credits from sectoral crediting. Therefore allowance prices should be relatively unaffected.

The market was given early notice of the use restrictions, so as to enhance investment in alternative projects that can deliver credits for the EU ETS from 2018 to 2020. The impact assessment shows that even if developed and developing countries fully implement their pledges under the Copenhagen Accord; there would still be sufficient reduction potential in developing countries in areas other than industrial gases at prices below the current European carbon price. This is confirmed by e. g., a recent study by Bloomberg New Energy Finance [1] .

Are HFC-23 projects not crucial to create sufficient liquidity in the carbon market?

Overall liquidity is guaranteed by the fungibility between CERs/ERUs and EU allowances. The economic recession has produced a situation where many EU companies accumulate and hold sizeable surpluses of allowances. In the light of this, there will be sufficient liquidity in the market for the coming years.

Will the restrictions lead to a fragmentation of the international carbon market?

No, because the EU makes up the vast majority of the international carbon market. In addition, other (developed) countries are likely to follow the EU's lead in not accepting industrial gas credits,.

Is this not a matter for the UNFCCC?

As the largest purchaser of JI and CDM credits in the world, and to safeguard the integrity of its Emissions Trading System, the EU takes the lead in the UNFCCC process in trying to reform the CDM in order to improve its environmental integrity, effectiveness, efficiency, regional distribution and contribution to sustainable development. The EU will continue to work in the UNFCCC process towards this end. Nonetheless, it is for the EU to ensure the integrity of the EU Emission Trading System and to decide which international credits it allows for compliance, in accordance with the EU ETS Directive (2009/29/EC).

The restrictions proposed would not replace the function of the CDM Executive Board or the Joint Implementation Supervisory Committee. The restrictions apply only to the use of these units for compliance purposes in the EU ETS.

Isn't the CDM Executive Board also investigating HFC-23 credits?

The Board is assessing allegations of non-additionality of HFC-23 credits. We strongly support action of the CDM Executive Board to eliminate these allegations, but this is not the only reason for restrictions in the EU ETS. There are other concerns related to the environmental merits, cost-effectiveness and competitive distortions of these projects. The EU must also reconcile the domestic use of CDM credits and its demands internationally to move away from the CDM towards sectoral mechanisms. Finally, the same concerns apply to JI projects of these categories.

Will the European Commission propose to apply further use restrictions beyond industrial gases for phase 3?

The ban on credits from these industrial gases is one of the implementing provisions of the revised ETS Directive for the third phase of the EU ETS, from 2018 to 2020. There may be further use restrictions in the future. However, the European Commission is currently not considering any specific use restrictions beyond industrial gases.

What is the "major overhaul" of the CDM that the EU is envisaging?

The European Union advocates creating a new generation of sectoral market mechanisms in more advanced developing countries, as a first step towards cap-and-trade systems. In addition, the environmental integrity of the CDM should be improved and the system should focus on Least Developed Countries. The CDM is a pure offsetting mechanism, where a tonne of greenhouse gas emissions reduced in a developing country creates a right to emit a tonne of greenhouse gases in a developed country. The EU believes that such a system cannot deliver the emission reductions needed to keep global warming below 2°C. To achieve this goal, commitments by industrialised countries should be complemented by appropriate mitigation actions by developing countries, in particular the most advanced developing countries.

Do these restrictions bind also Member States when they buy international credits for compliance with non-ETS emissions?

No. Use restrictions applied in accordance with the revised EU ETS Directive are only applicable to companies covered by the EU ETS. However, if Member States intend to use credits which are restricted in the EU ETS, for compliance with their 2018-2020 targets outside the EU ETS, they will have to motivate this to the European Commission. Several Member States have already decided not to use such credits for non-ETS compliance.

Revision for phase 4 (2021-2030)

The European Commission presented in July 2018 a legislative proposal to revise the EU emissions trading system (EU ETS) for the period after 2020.

This is the first step in delivering on the EU's target to reduce greenhouse gas emissions by at least 40% domestically by 2030 in line with the 2030 climate and energy policy framework and as part of its contribution to the Paris Agreement.

Increasing the pace of emissions cuts.

To achieve the at least 40% EU target, the sectors covered by the ETS have to reduce their emissions by 43% compared to 2005.

To this end, the overall number of emission allowances will decline at an annual rate of 2.2% from 2021 onwards, compared to 1.74% currently.

This amounts to an additional emissions reduction in the sectors covered by the ETS of some 556 million tonnes over the decade − equivalent to the annual emissions of the UK.

Better targeted carbon leakage rules.

The proposal further develops predictable, robust and fair rules to address the risk of carbon leakage.

Revising the system of free allocation to focus on sectors at highest risk of relocating their production outside the EU – around 50 sectors in total A considerable number of free allowances set aside for new and growing installations More flexible rules to better align the amount of free allowances with production figures Update of benchmarks to reflect technological advances since 2008.

It is expected that around 6.3 billion allowances will be allocated for free to companies over the period 2021-2030.

Funding low-carbon innovation and energy sector modernisation.

Several support mechanisms will be established to help the industry and the power sectors meet the innovation and investment challenges of the transition to a low-carbon economy.

These include two new funds:

Innovation Fund – extending existing support for the demonstration of innovative technologies to breakthrough innovation in industry Modernisation Fund – facilitating investments in modernising the power sector and wider energy systems and boosting energy efficiency in 10 lower-income Member States.

Free allowances will also continue to be available to modernise the energy sector in these lower-income Member States.

Stakeholder input.

Stakeholders were involved at various stages in the development of this proposal.

Extensive consultations were carried out in 2018, including.

Following these consultations and the analysis of EU climate policy targets for 2030, the Commission carried out an impact assessment.

The legislative proposal has been submitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions for further consideration under the ordinary legislative procedure.

The public had the possibility to provide feedback on the legislative proposal after it was adopted by the European Commission. Feedback was received from 85 stakeholders and a summary was presented to the European Parliament and the Council.

The EU Emissions Trading System (EU ETS)

The EU Emissions Trading System explained.

The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one.

operates in 31 countries (all 28 EU countries plus Iceland, Liechtenstein and Norway) limits emissions from more than 11,000 heavy energy-using installations (power stations & industrial plants) and airlines operating between these countries covers around 45% of the EU's greenhouse gas emissions.

For a detailed overview, see:

A 'cap and trade' system.

The EU ETS works on the 'cap and trade' principle.

A cap is set on the total amount of certain greenhouse gases that can be emitted by installations covered by the system. The cap is reduced over time so that total emissions fall .

Within the cap, companies receive or buy emission allowances which they can trade with one another as needed. They can also buy limited amounts of international credits from emission-saving projects around the world. The limit on the total number of allowances available ensures that they have a value.

After each year a company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a company reduces its emissions, it can keep the spare allowances to cover its future needs or else sell them to another company that is short of allowances.

Trading brings flexibility that ensures emissions are cut where it costs least to do so . A robust carbon price also promotes investment in clean, low-carbon technologies .

Key features of phase 3 (2018-2020)

The EU ETS is now in its third phase – significantly different from phases 1 and 2.

The main changes are:

A single, EU-wide cap on emissions applies in place of the previous system of national caps Auctioning is the default method for allocating allowances (instead of free allocation), and harmonised allocation rules apply to the allowances still given away for free More sectors and gases included 300 million allowances set aside in the New Entrants Reserve to fund the deployment of innovative renewable energy technologies and carbon capture and storage through the NER 300 programme.

Sectors and gases covered.

The system covers the following sectors and gases with the focus on emissions that can be measured, reported and verified with a high level of accuracy:

carbon dioxide (CO 2 ) from power and heat generation energy-intensive industry sectors including oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals commercial aviation nitrous oxide (N 2 O) from production of nitric, adipic and glyoxylic acids and glyoxal perfluorocarbons (PFCs) from aluminium production.

Participation in the EU ETS is mandatory for companies in these sectors , but.

in some sectors only plants above a certain size are included certain small installations can be excluded if governments put in place fiscal or other measures that will cut their emissions by an equivalent amount in the aviation sector, until 2018 the EU ETS applies only to flights between airports located in the European Economic Area (EEA).

Delivering emissions reductions.

The EU ETS has proved that putting a price on carbon and trading in it can work. Emissions from installations in the scheme are falling as intended – by around 5% compared to the beginning of phase 3 (2018) (see 2018 figures).

In 2020 , emissions from sectors covered by the system will be 21% lower than in 2005 .

Developing the carbon market.

Set up in 2005, the EU ETS is the world's first and biggest international emissions trading system, accounting for over three-quarters of international carbon trading.

The EU ETS is also inspiring the development of emissions trading in other countries and regions. The EU aims to link the EU ETS with other compatible systems.

Main EU ETS legislation.

30/04/2018 - Consolidated version of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 23/04/2009 - Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community 19/11/2008 - Directive 2008/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community 27/10/2004 - Directive 2004/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol's project mechanisms 13/10/2003 - Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.

Carbon market reports.

23/11/2017 – COM(2017) 693 – Report on the functioning of the European carbon market 01/02/2017 - COM(2017) 48 - Report on the functioning of the European carbon market 18/11/2018 - COM(2018) 576 - Report on the functioning of the European carbon market 14/11/2018 - COM(2018) 652 - The state of the European carbon market in 2018.

Revision of the EU ETS for phase 3.

04/02/2018 - European Council conclusions of 4 February 2018 (see conclusions 23 and 24) 18/03/2018 - Guidance on interpretation of Annex I of the EU ETS Directive (excl. aviation activities) 18/03/2018 - Guidance paper to identify electricity generators 06/04/2009 - Council press release on the adoption of the climate and energy package 12/12/2008 - Presidency conclusions of the European Council (11 and 12 December 2008) 12/12/2008 - European Council Statement on the use of auction revenues 23/01/2008 - Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community 23/01/2008 - Commission staff working document - Accompanying document to the Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the EU greenhouse gas emission allowance trading system - Impact assessment.

Implementação.

04/07/2018 - Amended Draft Regulation on determining international credit entitlements 05/06/2018 - Draft regulation on determining international credit entitlements 05/05/2018 Commission Regulation (EU) No 389/2018 of 2 May 2018 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2018 and No 1193/2018 Text with EEA relevance 18/11/2018 - Commission Regulation establishing a Union Registry for the trading period commencing on 1 January 2018, and subsequent trading periods, of the Union emissions trading scheme pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision 280/2004/EC of the European Parliament and of the Council and amending Regulations (EC) No 2216/2004 and (EU) No 920/2018 - not yet published in the Official Journal 07/10/2018 - Commission Regulation (EU) No 920/2018 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council - version not including changes brought by Regulation of 18 November 2018 08/10/2008 - Commission Regulation (EC) No 994/2008 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council - version applicable until 31 December 2018 26/10/2007 - EEA Joint Committee Decision No 146/2007 linking the EU ETS with Norway, Iceland and Liechtenstein 13/11/2006 - Commission Decision 2006/780/EC on avoiding DOUBLE COUNTING of greenhouse gas emission reductions under the Community emissions trading scheme for project activities under the Kyoto Protocol pursuant to Directive 2003/87/EC of the European Parliament and of the Council (notified under document number C(2006) 5362) 21/12/2004 - Consolidated version of Commission Regulation (EC) No 2216/2004 for a standardised and secured system of registries amended by Commission Regulation (EC) No 916/2007 of 31 July 2007, Commission Regulation (EC) No 994/2008 of 8 October 2008 and Commission Regulation (EU) No 920/2018 of 7 October 2018 - version not including changes brought by Regulation of 18 November 2018.

Application of VAT.

Legislative History of Directive 2003/87/EC.

Work prior to the Commission proposal.

08/02/2000 - COM(2000) 87 - Green Paper on greenhouse gas emissions trading within the European Union Mandate and results of ECCP Working Group 1 : Flexible mechanisms 04/09/2001 - Chairman's Summary Record of Stakeholder consultation meeting (with Industry and Environmental NGOs) 19/05/1999 - COM(1999) 230 - Preparing for Implementation of the Kyoto Protocol 03/06/1998 - COM(1998) 353 - Climate Change - Towards an EU Post-Kyoto Strategy Scope of the EU ETS: 07/2007 - Small Installations within the EU Emissions Trading System 10/2006 - Inclusion of additional activities and gases into the EU Emissions Trading System Further harmonisation and increased predictability: 12/2006 - The approach to new entrants and closures 10/2006 - Auctioning of CO2 emission allowances in the EU ETS 10/2006 - Harmonisation of allocation methodologies 12/2006 - Report on international competitiveness ECCP working group on emissions trading on the review of the EU ETS 15/06/2007 - Final report of the 4th meeting on Linking with Emission Trading Systems in Third Countries 22/05/2007 - Final report of the 3rd meeting on Further Harmonisation and Increased Predictability 26/04/2007 - Final Report of the 2nd meeting on Robust Compliance and Enforcement 09/03/2007 - Final Report of the 1st meeting on The Scope of the Directive.

Commission proposal of October 2001.

22/01/2002 - Non-paper on synergies between the EC emissions trading proposal (COM(2001)581) and the IPPC Directive 23/10/2001 - COM(2001) 581 - Proposal for a framework Directive for greenhouse gas emissions trading within the European Community.

Commission's reaction to reading of the proposal in Council and Parliament (including Council's common position)

18/07/2003 - COM(2003) 463 - Opinion of the Commission on the European Parliament's amendments to the Council's common position regarding the proposal for a Directive of the European Parliament and of the Council 20/06/2003 - COM(2003) 364 - Commission Communication to the European Parliament concerning the Council's Common Position on the adoption of a Directive establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 18/03/2003 - Common Position (EC) No 28/2003 - Council's Common Position on the adoption of a Directive establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC 27/11/2002 - COM(2002) 680 - Amended proposal for a directive of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC Faq.

Open all questions.

Questions and Answers on the revised EU Emissions Trading System (December 2008)

What is the aim of emissions trading?

The aim of the EU Emissions Trading System (EU ETS) is to help EU Member States achieve their commitments to limit or reduce greenhouse gas emissions in a cost-effective way. Allowing participating companies to buy or sell emission allowances means that emission cuts can be achieved at least cost.

The EU ETS is the cornerstone of the EU's strategy for fighting climate change. It is the first international trading system for CO 2 emissions in the world and has been in operation since 2005. As of I January 2008 it applies not only to the 27 EU Member States, but also to the other three members of the European Economic Area – Norway, Iceland and Liechtenstein. It currently covers over 10,000 installations in the energy and industrial sectors which are collectively responsible for close to half of the EU's emissions of CO 2 and 40% of its total greenhouse gas emissions. An amendment to the EU ETS Directive agreed in July 2008 will bring the aviation sector into the system from 2018.

Como funciona o comércio de emissões?

The EU ETS is a 'cap and trade' system, that is to say it caps the overall level of emissions allowed but, within that limit, allows participants in the system to buy and sell allowances as they require. These allowances are the common trading 'currency' at the heart of the system. One allowance gives the holder the right to emit one tonne of CO 2 or the equivalent amount of another greenhouse gas. The cap on the total number of allowances creates scarcity in the market.

In the first and second trading period under the scheme, Member States had to draw up national allocation plans (NAPs) which determine their total level of ETS emissions and how many emission allowances each installation in their country receives. At the end of each year installations must surrender allowances equivalent to their emissions. Companies that keep their emissions below the level of their allowances can sell their excess allowances. Those facing difficulty in keeping their emissions in line with their allowances have a choice between taking measures to reduce their own emissions – such as investing in more efficient technology or using less carbon-intensive energy sources – or buying the extra allowances they need on the market, or a combination of the two. Such choices are likely to be determined by relative costs. In this way, emissions are reduced wherever it is most cost-effective to do so.

How long has the EU ETS been operating?

The EU ETS was launched on 1 January 2005. The first trading period ran for three years to the end of 2007 and was a 'learning by doing' phase to prepare for the crucial second trading period. The second trading period began on 1 January 2008 and runs for five years until the end of 2018. The importance of the second trading period stems from the fact that it coincides with the first commitment period of the Kyoto Protocol, during which the EU and other industrialised countries must meet their targets to limit or reduce greenhouse gas emissions. For the second trading period EU ETS emissions have been capped at around 6.5% below 2005 levels to help ensure that the EU as a whole, and Member States individually, deliver on their Kyoto commitments.

What are the main lessons learned from experience so far?

The EU ETS has put a price on carbon and proved that trading in greenhouse gas emissions works. The first trading period successfully established the free trading of emission allowances across the EU, put in place the necessary infrastructure and developed a dynamic carbon market. The environmental benefit of the first phase may be limited due to excessive allocation of allowances in some Member States and some sectors, due mainly to a reliance on emission projections before verified emissions data became available under the EU ETS. When the publication of verified emissions data for 2005 highlighted this “over-allocation”, the market reacted as would be expected by lowering the market price of allowances. The availability of verified emissions data has allowed the Commission to ensure that the cap on national allocations under the second phase is set at a level that results in real emission reductions.

Besides underlining the need for verified data, experience so far has shown that greater harmonisation within the EU ETS is imperative to ensure that the EU achieves its emissions reductions objectives at least cost and with minimal competitive distortions. The need for more harmonisation is clearest with respect to how the cap on overall emission allowances is set.

The first two trading periods also show that widely differing national methods for allocating allowances to installations threaten fair competition in the internal market. Furthermore, greater harmonisation, clarification and refinement are needed with respect to the scope of the system, the access to credits from emission-reduction projects outside the EU, the conditions for linking the EU ETS to emissions trading systems elsewhere and the monitoring, verification and reporting requirements.

What are the main changes to the EU ETS and as of when will they apply?

The agreed design changes will apply as of the third trading period, i. e. January 2018. While preparatory work will be initiated immediately, the applicable rules will not change until January 2018 to ensure that regulatory stability is maintained.

The EU ETS in the third period will be a more efficient, more harmonised and fairer system.

Increased efficiency is achieved by means of a longer trading period (8 years instead of 5 years), a robust and annually declining emissions cap (21% reduction in 2020 compared to 2005) and a substantial increase in the amount of auctioning (from less than 4% in phase 2 to more than half in phase 3).

More harmonisation has been agreed in many areas, including with respect to the cap-setting (an EU-wide cap instead of the national caps in phases 1 and 2) and the rules for transitional free allocation.

The fairness of the system has been substantially increased by the move towards EU-wide free allocation rules for industrial installations and by the introduction of a redistribution mechanism that entitles new Member States to auction more allowances.

How does the final text compare to the initial Commission proposal?

The climate and energy targets agreed by the 2007 Spring European Council have been maintained and the overall architecture of the Commission's proposal on the EU ETS remains intact. That is to say that there will be one EU-wide cap on the number of emission allowances and this cap will decrease annually along a linear trend line, which will continue beyond the end of the third trading period (2018-2020). The main difference as compared to the proposal is that auctioning of allowances will be phased in more slowly.

What are the main changes compared to the Commission's proposal?

In summary, the main changes that have been made to the proposal are as follows:

Certain Member States are allowed an optional and temporary derogation from the rule that no allowances are to be allocated free of charge to electricity generators as of 2018. This option to derogate is available to Member States which fulfil certain conditions related to the interconnectivity of their electricity grid, share of a single fossil fuel in electricity production, and GDP/capita in relation to the EU-27 average. In addition, the amount of free allowances that a Member State can allocate to power plants is limited to 70% of carbon dioxide emissions of relevant plants in phase 1 and declines in the years thereafter. Furthermore free allocation in phase 3 can only be given to power plants that are operational or under construction no later than end 2008. See reply to question 15 below. There will be more details in the Directive on the criteria to be used to determine the sectors or sub-sectors deemed to be exposed to a significant risk of carbon leakage , and an earlier date of publication of the Commission's list of such sectors (31 December 2009). Moreover, subject to review when a satisfactory international agreement is reached, installations in all exposed industries will receive 100% free allowances to the extent that they use the most efficient technology. The free allocation to industry is limited to the share of these industries' emissions in total emissions in 2005 to 2007. The total number of allowances allocated for free to installations in industry sectors will decline annually in line with the decline of the emissions cap. Member States may also compensate certain installations for CO 2 costs passed on in electricity prices if the CO 2 costs might otherwise expose them to the risk of carbon leakage. The Commission has undertaken to modify the Community guidelines on state aid for environmental protection in this respect. See reply to question 15 below. The level of auctioning of allowances for non-exposed industry will increase in a linear manner as proposed by the Commission, but rather than reaching 100% by 2020 it will reach 70%, with a view to reaching 100% by 2027. As foreseen in the Commission's proposal, 10% of the allowances for auctioning 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. A provision has been added for another redistributive mechanism of 2% of auctioned allowances 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. The share of auctioning revenues that Member States are recommended to use to fight and adapt to climate change mainly within the EU, but also in developing countries, is raised from 20% to 50%. The text provides for a top-up to the proposed permitted level of use of JI/CDM credits in the 20% scenario for existing operators that received the lowest budgets to import and use such credits in relation to allocations and access to credits in the period 2008-2018. New sectors, new entrants in the periods 2018-2020 and 2008-2018 will also be able to use credits. The total amount of credits that may be used will, however, not exceed 50% of the reduction between 2008 and 2020. Based on a stricter emissions reduction in the context of a satisfactory international agreement, the Commission could allow additional access to CERs and ERUs for operators in the Community scheme. See reply to question 20 below. The proceeds from auctioning 300 million allowances from the new entrants reserve will be used to support up to 12 carbon capture and storage demonstration projects and projects demonstrating innovative renewable energy technologies. A number of conditions are attached to this financing mechanism. See reply to question 30 below. The possibility to opt-out small combustion installations provided they are subject to equivalent measures has been extended to cover all small installations irrespective of activity, the emission threshold has been raised from 10,000 to 25,000 tonnes of CO 2 per year, and the capacity threshold that combustion installations have to fulfil in addition has been raised from 25MW to 35MW. With these increased thresholds, the share of covered emissions that would potentially be excluded from the emissions trading system becomes significant, and consequently a provision has been added to allow for a corresponding reduction of the EU-wide cap on allowances.

Will there still be national allocation plans (NAPs)?

No. In their NAPs for the first (2005-2007) and the second (2008-2018) trading periods, Member States determined the total quantity of allowances to be issued – the cap – and how these would be allocated to the installations concerned. This approach has generated significant differences in allocation rules, creating an incentive for each Member State to favour its own industry, and has led to great complexity.

As from the third trading period, there will be a single EU-wide cap and allowances will be allocated on the basis of harmonised rules. National allocation plans will therefore not be needed any more.

How will the emission cap in phase 3 be determined?

The rules for calculating the EU-wide cap are as follows:

From 2018, 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 2018 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 (2018 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 don't take account of aviation, which will be added in 2018, 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 2018.

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 2°C 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 2018 to 2020, as opposed to five years for the second phase from 2008 to 2018.

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 2018 will correspond better to expected emissions trends over the period.

What are the tentative annual ETS cap figures for the period 2018 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 2018), and the Commission's 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?

Sim. 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 2018 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 2018, 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 2018 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 2018 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 2018, with Member States agreeing to start at 20% auctioning in 2018, 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 2018, 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 2018, 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 State's 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 2018?

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 2018, 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 2018, 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 2018, 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 2008-2018, while a top-up is foreseen for operators with the lowest sum of free allocation and allowed use of credits in the 2008-2018 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 2018-2020. 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 Protocol’s 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 2008-2018 will be accepted in the period 2018-2020. Furthermore, from 1 January 2018 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 2018 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 2018 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?

Sim. 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 won't 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 2018 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?

Sim. 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 2018 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 2018 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 2018 (“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 Parliament's 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 2018 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.

Quais são os próximos passos?

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 2018, 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 2018.

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 2018), the harmonised allocation rules (due end 2018) and the two Regulations on monitoring and reporting of emissions and verification of emissions and accreditation of verifiers (due end 2018).