Emission Trading System (EU ETS)

EU ETS post 2012

Latest news

The revised Directive on the EU ETS was published in the Official Journal on 5 June 2009.

• Directive 2009/29/EC

Council adopted on 6 April 2009 the climate-energy legislative package containing measures to fight climate change and promote renewable energy. This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020.

• Adopted text
• Declaration by European Council on the use of auction revenues and other issue
• Council press release

On 23 January 2008, the Commission adopted a proposal designed to amend the current EU ETS Directive (Directive 2003/87/EC). The proposal represents the outcome of discussions on the review of the Directive, as required by Article 30 and COM(2006)676 final which sets out the terms of reference for the review. In line with these, the Commission convened four meetings within the framework of the European Climate Change Programme in Spring/Summer 2007.

• Proposal for a Directive amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community

• 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

• Questions and Answers on the Commission's proposal to revise the EU Emissions Trading System (MEMO/08/35)

• Questions and Answers on the revised EU Emissions Trading System - MEMO/08/796 (17/12/08)

The Proposal is part of draft legislation implementing the Integrated Energy Climate Change Package from January 2007 (see below): the Climate Action and Renewable Energy Package of 23 January 2008 also contains a proposal for a Decision on the effort of Member States to reduce their greenhouse gas (GHG) emissions to meet the Community's GHG emission reduction commitments up to 2020 and a Directive on the promotion on the use of renewable energy sources.

Prior to the proposal, the Commission took decisions on all 27 Member States' National Allocation Plans for the trading period 2008-2012 (NAPII). These account for 6.5% reduction below 2005 verified emissions. The proposal for the third trading period from 2013 onwards should be seen as the EU's contribution to furthering international developments aimed at reducing global greenhouse gas emissions.

Background:

The Integrated Energy and Climate change package from January 2007 , endorsed by the European Council in March 2007, underlined the objective of limiting the rise in global average temperature to no more than 2° Celsius above pre-industrial levels. To achieve this goal, Member States agreed to reduce the EU's greenhouse gas (GHG) emissions by 20% in 2020 compared to 1990 levels and by 30% provided other developed countries commit themselves to comparable reduction targets. In order to achieve these objectives, the EU intends to increase energy efficiency by 20% and increase the share of renewable energy to at least 20% and biofuels to 10% by 2020.

The proposal to amend the current EU ETS Directive represents the outcome of discussions on the review of the Directive, as required by Article 30 and COM(2006)676 final which sets out the terms of reference for the review. In line with these, the Commission convened four meetings within the framework of the European Climate Change Programme in Spring/Summer 2007. Among others, the results and outcome of these meetings have been considered by the Commission when preparing the proposal.

• Read more on the EU ETS Review