Country:European Union
Policy status:In Force
Date Effective:2004
Policy Type:Economic Instruments>Market-based instruments
Policy Target:
Agency:European Commission, DG Environment
Description:The Directive allows European companies that invest in emission reduction measures in Russia, Eastern Europe and developing nations to count these investments towards their reduction commitments under the EUs Emissions Trading Scheme (ETS). Companies will be able to use all reduction credits issued in accordance with the Kyoto Protocol under the EU ETS, as under the Clean Development Mechanism (CDM) and Joint Implementation (JI). Credits from nuclear energy projects are therefore invalid, and the use of credits from carbon sinks will be reviewed by the Commission in 2006. The proposed Directive also requires Member States to ensure that projects address the environmental and social impacts of large hydroelectric power projects are addressed through the application of relevant international criteria and guidelines when they approve such projects. The extent of credit use will be decided by each Member State and will guarantee that a significant reduction of greenhouse gas emissions still occurs within the European Union, and not abroad.

Last modified: Mon, 09 Jul 2012 16:08:07 CEST