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EU outlines new industry rules for CO2 emissions trading
- 13 years ago (2011-04-28)
- Junior Isles
The European Union's executive has outlined how its carbon dioxide (CO
2
) emission trading system will work in the future, adopting criteria for how many free permits key industries should receive from 2013 onwards.
The emission trading system (ETS) is a key part of the EU’s strategy to curb climate change. Under the scheme, as less polluting industries can sell their excess CO
2
allowances at auction to more CO
2
-intensive competitors.
However, following intensive lobbying from industry, the EU decided in 2009 that sectors vulnerable to “carbon leakage” – competition from countries that are less strict on CO
2
emissions – should be given free allowances for eight years starting from 2013.
The European Commission has now said carbon leakage industries will have free permits handed out to them, allowing them to emit CO
2
roughly up to the level “of the most efficient 10 per cent of installations” in their sector.
The EC said that meeting that benchmark “may represent a challenge for some installations and necessitate a transition to significantly more greenhouse gas and fuel-efficient production”.
Industries still struggling to meet the target would have to make up for their extra emissions by buying more ETS allowances at auction.
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