EU Emissions Trading Scheme Review Project
This project, done jointly with Defra, gained cross-government agreement on the UK’s position on the future of the EU Emissions Trading Scheme.
The EU Emissions Trading Scheme (EU ETS) is the world’s largest CO2 trading scheme. An overall cap is set on the level of carbon dioxide emissions for the sectors covered by the scheme. Companies then receive individual emissions “allowances” which they can then trade between themselves. Such trading ensures that – in theory – emissions reductions to meet the cap can be achieved at least cost.
The European Commission announced in November 2006 that it would be carrying out a fundamental review of the EU Emissions Trading Scheme, which currently covers sectors accounting for about half of the EU’s CO2 emissions. The review provides an opportunity for the UK to influence how the scheme will work after 2013.
Through this project we have agreed a high-level position which sets out the Government’s views on key aspects of the scheme. The Commission published a draft proposal on the future of the scheme in January 2008.
Our September 2007 analysis paper (Click here for link) setting out an appraisal of the options for issues concerning the review has now been superceded by a more detailed Partial Impact Assessment (published May 2008) on the EU Commission's proposals to amend the EU ETS from 2013. Full details are available on Defra's website here.
Further information about the EU ETS Review is available at the Defra EU ETS website here.
For more information contact: enquiries@occ.gsi.gov.uk
Page last modified: 15-05-08
Page published: 27-11-07