Emissions Trading
The European Union Emissions Trading Scheme (EU ETS) is one of a number of measures used by the EU to reduce greenhouse gas emissions and combat the global threat of climate change. The scheme is designed to help meet the EU’s targets set in the Kyoto Protocol. The first phase begins Jan 1st 2005 and runs for three years, with the second phase running to coincide with the first phase of the Kyoto Commitment Period 2008-2012.
In Phase I & II of the scheme the emphasis will be on Carbon Dioxide (CO2) reductions, but other greenhouse gases such as Methane (CH4) and Nitrous Oxide (N2O) may be introduced in Phase III. Each EU Member State must decide how to apportion their allocation of allowances in a National Allocation Plan (NAP). The commission has approved the Phase II UK NAP this can be downloaded from the Defra website UK National allocation Plan page
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In the Phase II of the scheme existing operators will receive allowances based on their historical emissions. New Entrants to the scheme will have to apply for an allocation through the phase II New Entrant Reserve (NER). Guidance and application forms for NER are available to download from our Application forms and Guidance page
Schedule 1 of 'The Greenhouse Gas Emissions Trading Scheme Regulations 2003' sets out the Activities and Specified emissions covered . Any installation carrying out a Schedule 1 activity resulting in specified emissions after 1 January 2005, must do so under and to the extent authorised by a Greenhouse Gas Emissions permit.