1 European GHG emissions and the EU ETS Dr. Andreas Barkman Project manager GHG emissions and emission trading European Environment Agency

2 The European Environment Agency is the EU body dedicated to providing sound, independent information on the environment European Environment Agency

EEA member and collaborating countries Member countries Collaborating countries

4 EEA work on EU GHG emissions Compiles the EU GHG inventory and reporting under UNFCCC and the Kyoto Protocol Assesses progress towards Kyoto and 2020 targets Assesses efficiency of polices and measures Analyse the application and effect of the EU ETS and links to total GHG emissions Provides GHG and EU ETS data in useful formats – data centre

5 EU-27 GHG trends

6 EU-15 GHG trends

7 EU-15 is capable of reaching the Kyoto target……

8 ….but only through using: Kyoto mechanisms, carbon sinks and the EU ETS

9 The EU ETS - general Cap and trade scheme Important instrument for EU to reach Kyoto commitments and any 2020 commitment Covers ca 40% of all GHG emission within EU-27 More than installations Pilot Phase Kyoto phase Post-2012 design and architecture under negotiations between European Parliament and European Council Any international post-2012 agreement may affect the EU ETS

10 EU ETS brief legal context The EU ETS Directive (2003) The linking Directive (2004) Registry Regulation (2004/2007) Monitoring and reporting guidelines (2004/2007) National allocation guidance

11 Installation Company MS/AnnexBMS EIT countries Developing countries Installation Company CDM JI EU ETS IET Linking Directive EU ETS Kyoto Protocol

12 EU ETS results: CO2 emissions are dominated by large emitters >500kt/year

13 EU ETS results:

14 EU ETS results:

15 EU GHG Target: -20% compared to % compared to 2005 EU ETS -21% compared to 2005 Non ETS sectors -10% compared to Member State targets, stretching from -20% to +20%

16 EU ETS post-2012 proposal (under discussion) Cover all big industrial emitters: extension e.g. to chemical sectors and aluminium Extension to other GHG: nitrous oxide (fertilisers), perfluorocarbons (aluminium) Single EU-wide cap instead of 27 caps set by Member States More auctioning – especially for power generation Linear decrease of the cap predictable trend-line to 2020 and beyond can be adjusted to stricter target Aviation to be included in line with political agreement Non-compliance penalties (€100/ton CO2) to increase by inflation rate to keep deterrent effect Better harmonisation of Monitoring, Reporting and Verification through stronger legal settings

17 Thank you for your attention! See for more information the EEA web site: Thank you for your attention! See for more information the EEA web site: