Brussels, 09/07/2010 (Agence Europe) - The European Commission has decided to introduce an upper limit of 1.027 billion “pollution permits” that can be granted in the EU under the EU's carbon trading system, ETS (emissions trading system) in 2013.
On Friday 9 July, the European Commission adopted a decision which determines for the first time a ceiling or “cap” on the number of emission allowances that will be available under the EU Emissions Trading System (EU ETS) in 2013, the first year of the 2013-2020 trading period and the first year after the first commitment period under the Kyoto Protocol (which ran out in 2012).
In a press release, the Commission explains that this has been calculated on the basis of a formula which applies a 1.74% annual reduction in allowances below the average yearly total allocated through member states' national allocation plans in the 2008-2012 trading period.
The application of this reduction each year to 2020 and beyond will result in a 21% fall in emissions from the 2005 level by 2020. The ceiling has been decided in line with the 2009 climate and energy package of legislation, which requires a 20% cut in EU greenhouse gas emissions by 2020 from 1990 levels. The cap would need to be revised if a decision were taken to increase the emission reduction target to 30%, as the EU has committed to do if other major economies agree to take on their fair share of a global emissions reduction effort.
The Commission explains that the announced cap is not definitive as it reflects the current rather than the future scope of the EU ETS. An adjusted cap taking into account the inclusion in the EU ETS from 2013 of new industries (eg aluminium) and gases (eg nitrous oxide) is due to be published in September 2010.
The 2013 cap for the aviation sector, which will join the EU ETS in 2012, will be determined in a separate decision. (A.N./transl.fl)