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Industrial Emissions

smokeStudies

Emissions Trading for SO2 and NOx

Following the 2007 Commission Communication "Towards an improved policy on industrial emissions", DG Environment has been investigating whether and how a NOx/SOx emissions trading scheme could be applied as a replacement to the BAT-based permitting system of the IPPC Directive / IED.

To this end, two studies have been carried out assessing the environmental and economic impacts of a number of different trading scenarios as well as the overall societal costs and benefits of a European-wide NOx/SOx trading system. The results of the studies show that a trading scheme for these two pollutants could be more cost-effective than the BAT-based permitting system under the IED, but also reveal a number of important drawbacks that can not be ignored.

  1. The implementation of the IED will require industry to make investment decisions soon in order to comply with the strengthened BAT requirements. Following the route of an emissions trading instrument would open a period of uncertainty and delay implementation of the IED, thus hampering the achievement of its objectives.

  2. Concerns remain that at local level the effects of a trading system could pose problems in terms of endangering the achievement of the EU air quality objectives and limit values.

The Commission has therefore decided not to pursue action with regard to a NOx/SOx trading system.

All information on the studies, including the final reports, is available on a CIRCA website.

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