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Emissions Trading: European Commission Kicks Off Review Of The EU system

Date 14/06/2005

The European Commission is launching a web survey to consult stakeholders on their views on the EU Emission Trading Scheme (EU ETS). The EU ETS has been in place since January 2005. This survey is the first step in the review of the functioning of the scheme and will result in a report by the Commission in mid-2006, the final review may lead to a revision of the emission trading directive, including an extension of the system to new sectors and gases.

Environment Commissioner Stavros Dimas said: “This survey is a crucial element in our review of the system and our preparations for the next steps”. He continued by saying that input from stakeholders with hands-on experience is very important and he encouraged all stakeholders to participate actively in the survey.

Around five hundred stakeholders - including companies in trading sectors and their associations, NGOs and Member States - will be contacted directly and invited to participate in the survey. Other stakeholders will be provided access if they express an interest to participate. (See webpage for further details)

The survey covers a wide range of issues such as the functioning of the allowance market, a harmonisation of allocation methods, the treatment of new entrants and closures, the feasibility of including further sectors and gases in the EU ETS, accounting and taxation issues and last, but not least, it addresses competitiveness issues.

The results of the survey will feed into the report that the Commission should submit to the European Parliament and to the Council in 2006 on the application of the emissions trading system. This report may be accompanied by proposals for amendments to the scheme, such as inclusion of additional sectors and greenhouse gases. The results of the survey will help the Commission to establish whether such proposals would be appropriate. However, any amendments to the emissions trading Directive that the Commission proposes in 2006 would only have an effect from the third trading period onward, which will begin in 2013[1]. This is because of the time needed for the legislative procedure and because the national allocation plans for the second trading period have to be submitted already in mid-2006, at the same time as the report is published. The survey will also inform the elaboration of allocation plans for the second trading period 2008-2012.

The survey, which will be open until 16 August 2005, will be followed up by discussions with stakeholders during 2005 and 2006.

Background

Article 30 of Directive 2003/87/EC on emissions trading requires the Commission to review the emissions trading scheme, and lists a number of issues that should be addressed. Article 30 also provides that the Commission shall prepare a report to the European Parliament and to the Council by 30 June 2006.

A link to the web survey and further information on Emissions Trading and climate change policy is available at:

http://www.europa.eu.int/comm/environment/climat/emission.htm


[1] first trading period = 2005-2207, second = 2008-2012