EuropeanUnionEmissionsTradingScheme(ETS)最新分析和总结.pdfVIP

European Union Emissions Trading Scheme (ETS) Introduction In a bid to reduce greenhouse gas emissions in accordance with the Kyoto Protocol, the European Union ( “E.U. ” ) passed Directive 2003/87/EC ( , also known as the Emissions Trading Sch“Directive ”) eme ( “ETS”) in 2003. The Directive, which took effect in 2005, established a system of “emissions trading ” whereby member states are required to set an emissions cap for all sectors covered by the Directive. Each member state will be allotted a certain n umber of “allowances, ” which are then allotted internally to covered sectors within that member state. Allowances, or “credits, essentially function as an emissions currency used to purchase the right to emit a certain amount of greenhouse gases. Since the total number of available allowances is capped, the total amount of greenhouse gas emissions is limited. Like a commodity, allowances can be bought and sold (or, “traded ” ). Thus, those whose “emissions cost ” is less than their allotted number of allowances can sell their extra credits to those who may need more allowances to pay for and sustain a higher level of emission. The goal is to reduce overall greenhouse gas emissions by 21% by the year 2020. To whom does the Directive apply? Currently, heavy emitting industries, such as electricity generators; iron, steel, and mineral processing industries; and pulp and paper processing industries are covered under the Directive. 1. 2008/101/EC: The inclusion of aviation Earlier this year, the E.U. approved EC/2008/101, which amended the Directive to include aviation as a covered sector under the ETS (together, with the changes made by EC/2008/101, the Directive shall hereinafter be referred to as the