|Agency:||Ministry of Economic Affairs|
The EU ETS sets a cap on total direct GHG emissions for its participants (mostly energy generation and heavy industry in participating countries). The EU ETS phase I and II covered in the Netherlands approximately 400 installations. Nitrous oxide emissions from certain processes are also covered. In January 2012 the Dutch Ministry published his National Allocation Plan for the free allocation of allowances for the third trading period (Min I&M, 2012) . The EU-ETS officially began on January 1, 2005 and consists of a “pilot” phase (phase I) from 2005-2007, with the second phase (phase II) from 2008-2012 set to coincide with the Kyoto compliance period. The EU ETS sets a cap on total direct GHG emissions for its participants. Individual participants in phase I and II got a number of emission allowances for free and can buy additional allowances if they need more, assuming other participants have spare allowances to sell. The price of the allowances will influence participants' decision to invest in emission reduction measures or to buy allowances when they are faced with a shortage of allowances compared to their actual emissions.
In phase I and II, each country determined the total amount of allowances available for its national participants with the guidelines and limits of the Directive, but allowances can be traded internationally (i.e. there is no national cap on emissions). The EU ETS phase I and II covers CO2 emissions from some ~11,000 installations in Europe, in the Netherlands approximately 400 installations are covered under the EU-ETS. From 2013 onwards (EU ETS III) the system for allocating emission allowances will significantly change compared to the two previous trading periods (2005-2012). Most important changes are:
• Emission allowances will be distributed according to fully harmonised and EU-wide rules, meaning that the same rules will apply across all EU Member States.
• Auctioning will be the rule for the power sector, which means that the majority of allowances under the EU Emissions Trading System will not anymore be allocated for free.
• For industry, a part of the allowances will still be given for free (depending on the vulnerability to carbon leakage and their relative performance compared to similar European companies), but this part will decrease over time.
• The scheme will be expanded in Phase III, with the aviation sector, petrochemicals, ammonia and aluminium industries and to additional gases (like N20).
At the same time a series of important changes to the way the EU ETS works will take effect in order to strengthen the system.
In January 2012 the Dutch Ministry published his National Allocation Plan for the free allocation of allowances for the third trading period (Min I&M, 2012) .
Last modified: Tue, 09 Apr 2013 13:46:11 CEST