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 began in January 2005 and ran until December 2007.
The second phase runs 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 which is available from the Department Energy and Climate Change (DECC) UK National allocation Plan page
In 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). NER Guidance and application forms are available 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 (.PDF 15.64Kb). Any installation carrying out a Schedule 1 activity must have a Greenhouse Gas Emissions Permit.
Consultation on the first stage Transposition of the revised EU ETS Directive
The purpose of this consultation is to seek views on a draft Statutory Instrument to transpose the first stage of European Union Directive 2009/29/EC and can be viewed on the DECC website.
