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The EU ETS cap is the total amount of emission allowances to be issued for a given year under the EU Emissions Trading System (EU ETS). Since each allowance represents the right to emit one tonne of CO2 - or an amount of another greenhouse gas giving the same contribution to global warming as one tonne of CO2 - the total number of allowances, i.e. the “cap”, determines the maximum amount of emissions possible under the EU ETS.
In July 2010, the Commission adopted a first decision that determined the cap for 2013 based on the current scope of the EU Emissions Trading System, i.e the installations covered in the 2008-2012 period. The second decision, adopted in October 2010, takes into account the extended scope of the EU ETS as from 2013.
New sectors and gases covered under the extended scope
Since its launch in 2005 the EU Emissions Trading System has covered power stations and other combustion plants, oil refineries, coke ovens, iron and steel plants and installations producing cement, glass, lime, bricks, ceramics, pulp, paper and board. As for greenhouse gases, it currently covers only carbon dioxide emissions.
As from 2013, the scope of the ETS will be extended to include other sectors and greenhouse gases. Inter alia, more CO2 emissions from installations producing bulk organic chemicals, hydrogen, ammonia and aluminium will be included, as will nitrous oxide (N2O) emissions from the production of nitric, adipic and glyocalic acid production and perfluorocarbons from the aluminium sector. Installations performing activities which result in these emissions will be included in the EU ETS as from 2013.
Cap for 2013 determined at 2,04 billion allowances
The cap for the year 2013 has been determined at 2,039,152,882 allowances, i.e. just under 2.04 billion allowances.
The cap will decrease each year by 1.74% of the average annual total quantity of allowances issued by the Member States in 2008-2012. In absolute terms this means the number of allowances will be reduced annually by 37,435,387. This annual reduction will continue beyond 2020 but may be subject to revision not later than 2025.