Emission Trading System (EU ETS)

ETS Review

Responding to Article 30 of the ETS Directive, the Commission submitted a report to the European Parliament and the Council considering the functioning of the EU Emissions Trading Scheme (ETS) in November 2006:
COM(2006)676 final (pdf ~80KB)

In this report, the Commission analysed how the ETS had worked to date. It outlined the areas in which changes are considered and identified the need of a review process with a view to adapting some features of the ETS for the trading period starting in 2013.

The following areas represent the priorities the review should focus on including those which have already given rise to studies and position papers by stakeholders:

• scope of the EU ETS
  • Small Installations within the EU emissions trading scheme (pdf ~365KB)
  • Inclusion of additional activities and gases into the EU Emissions Trading Scheme (pdf ~662KB)
• further harmonisation and increased predictability
  • Auctioning of CO2 Emission Allowances in the EU ETS (pdf ~ 237KB)
  • The approach to new entrants and closures (pdf ~564KB)
  • Harmonisation of allocation methodologies (pdf ~798KB)
• robust compliance and enforcement
• involving third countries

An overview on all relevant issues and positions of stakeholders is provided by a survey:

• Review of EU Emissions Trading Scheme - Survey Highlights (pdf ~ 2,70KB)
• Review of EU Emissions Trading Scheme - Survey Results (pdf ~ 5,83KB)
• Review of EU Emissions Trading Scheme - Free Text Answers EU ETS Survey pdf ~ 2,68KB)

An analysis on the effects on international competitiveness is the subject of a further study:

• Report on international competitiveness (.pdf, 5.53KB)

Further consultations took place in the context of the European Climate Change Programme (ECCP), where a Working Group on the review of the EU emissions trading scheme (EU ETS) was set up.

1st meeting, 8 - 9 March 2007 dedicated to the focus area "scope of the EU ETS":

• Agenda and presentations of the meeting
• List of the participants (8-9 March 2007) (pdf 77 KB)
• Final Report of the 1st meeting of the ECCP working group on emissions trading on the review of the EU ETS on The Scope of the Directive (pdf 56 KB)

2nd meeting, 26 - 27 April 2007 on "Robust compliance and enforcement":

• Agenda and presentations of the meeting
• List of participants
• Final Report of the 2nd meeting of the ECCP working group on emissions trading on the review of the EU ETS on Robust compliance and enforcement (pdf 48KB)

3rd meeting, 21 - 22 May 2007 on "Further harmonisation and increased predictability":

• Agenda and presentation of the meeting
• List of participants
• Final report of the 3rd meeting of the ECCP working group on emissions trading on the review of the EU ETS on Further Harmonisation and Increased Predictability (pdf 109KB)

4th meeting 14 - 15 June 2007 on "Linking with Emission Trading Systems in Third Countries":

• Agenda and presentation of the meeting
• List of participants
• Final report of the 4th meeting of the ECCP working group on emissions trading on the review of the EU ETS on Linking with Emission Trading Systems in Third Countries (pdf 187KB)

The Group comprised representatives of Member States, industry, NGOs as well as academia and research. The final reports of each meeting of the Group represent the report announced in Commission Communication "Towards a global carbon market – Report pursuant to Article 30 of Directive 2003/87/EC".

The review process provided the Commission with relevant input for adapting the EU ETS to the requirements and needs of emissions trading after 2012.

List of stakeholders who have provided input to the review including their contributions (subject to agreement).

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