1. Emission trading system with pollutants in Slovakia
Lubomir Ziak
Ministry of the Environment
Bratislava, Slovakia
28th February 2007
CAFE Steering Group Meeting, Brussels

2. History of the emission trading in Slovakia
Legal framework – Act No. 309/1991 on Air Protection as amended
Possibility to set emission quotas was introduced in 1999
First year – 2002
During the period 2002 – 2006 a small number of transfers were carried out
A share of sources involved into PETS - 80%
28th February 2007
CAFE Steering Group Meeting, Brussels

3. Act No. 572/2004 on trading with emission quotas
Pollutant emissions trading system - basic information:
Entrance into force – 1st January 2007
Trading period - 1 calendar year
Pollutants – sulphur dioxide (SO2), nitrogen oxides as NO2
Participant of the trading system
- mandatory participants - operators of certain installations (plants) – determined by the Act in Annex I table C
- others participants - anybody who registers in the National Registry of the Emission Quotas (traders)
28th February 2007
CAFE Steering Group Meeting, Brussels

4. List of activities involved into PETS
Energy activities (Combustion installations with a rated thermal input exceeding 50 MW)
Production and processing of ferrous metals
Mineral industry
Mineral oil refineries
Other activities (pulp from timber or other fibrous materials, paper and board with a production capacity exceeding 20 tonnes per day)
28th February 2007
CAFE Steering Group Meeting, Brussels

5. Permit for release of pollutants
Each installation under the scope of the PETS has to have Permission for release of SO2 into air issued by the district office
This permission is a base for registration of the installation in the Registry
28th February 2007
CAFE Steering Group Meeting, Brussels

6. Content of the permission
Identification data on an operator, installation and emissions from this installation
Emission monitoring requirements and the authorization of an emission amount determination
Reporting requirements
Other obligations of operator resulting from the Act
28th February 2007
CAFE Steering Group Meeting, Brussels

7. Allocation of pollutant quotas
Legal frame – Ministerial Order No 131/2006 which determine national emission ceilings and total quotas for pollutants.
There is only total allowances for SO2 for years 2007 and 2008 in division for districts
Particular environmental district office allocates quotas to obligatory participants of PETS three months before trading period
The total amounts of quotas for concrete district can not be exceeded
Newcomers are engaged into the PETS not until next trading period
28th February 2007
CAFE Steering Group Meeting, Brussels

8. Gliding path to the NEC for SO2
28th February 2007
CAFE Steering Group Meeting, Brussels

9. Allocation of pollutant quotas – cont.
Total amounts of units of allowances (1 ton = 1 allowance) for SO2 were allocated by Ministerial Order 131/2007 for year 2007
District offices have allocated tons SO2 (90 %) for 87 obligatory stakeholders which operate 115 installations
Unallocated quotas remain at the account of the MoE ( tons)
Complete list of allocated quotas for obligatory participants you can find at the following web page   – ochrana ovzdušia – iné – emisné kvóty
28th February 2007
CAFE Steering Group Meeting, Brussels

10. Transfer of allowances
Restriction of validity and transfer of quotas
Allowances are valid only for issued trading period
There is prohibited to transfer allowances to a participant of the PETS which operate installation located in Air Quality Management Area (poor air quality)
There is allowed to transfer allowances between participants of the PETS until 15th February of the year following after the trading period
28th February 2007
CAFE Steering Group Meeting, Brussels

11. CAFE Steering Group Meeting, Brussels
Lesson learned
A small number of stakeholders release into the atmosphere major part of SO2 emissions (5 operators - 78,8%)
A real situation in SO2 emissions (97000 tons in 2004) and a high allocation of quotas ( tons for 2007) do not make the trading possible
On the present the political willingness of policymakers for reducing quotas does not exist
the Slovak market is too small
28th February 2007
CAFE Steering Group Meeting, Brussels

12. Conclusion
Slovakia has introduced the Pollutant Emission Trading System
This system will be functional in the future (2009 – 2010? and later)
Thank you for your attention
28th February 2007
CAFE Steering Group Meeting, Brussels