Functioning of the ETS and the flexible mechanisms

In 2003, the EU established a ‘cap & trade’ emissions trading system (EU ETS) for greenhouse gas (GHG) emissions of large industrial sources such as power plants, refineries and steel works. Since 2005, covered installations need a tradable allowance for each tonne of GHG In 2003, the EU established a ‘cap & trade’ emissions trading system (EU ETS) for greenhouse gas (GHG) emissions of large industrial sources such as power plants, refineries and steel works. Since 2005, covered installations need a tradable allowance for each tonne of GHG emission. To ensure a reduction of -71% in 2050 compared to 2005 the cap is constantly reduced. This briefing explains the basic functioning of the EU ETS and how emission reduction projects outside the EU, so called Flexible Mechanisms, can be used for compliance under the EU ETS.

The briefing paper Functioning of the ETS and the flexible mechanisms can be downloaded here >>

"German Version >>"[www.europarl.europa.eu/activities/committees/studies/download.do?language=en&file=35511] | "French Version >>"[www.europarl.europa.eu/activities/committees/studies/download.do?language=en&file=35509]

"Workshop Report >>"[www.europarl.europa.eu/activities/committees/studies/download.do?language=en&file=35571]

"Webcast >>"[www.europarl.europa.eu/wps-europarl-internet/frd/vod/player?eventCode=20110322-0930-COMMITTEE-ENVI&language=EN&byLeftMenu=researchcommittee&category=COMMITTEE&format=wmv#anchor1]