Emissions Trading Directive

The aim of the EU Emissions Trading Directive (2003/87/EC) is to keep the emissions of the sectors covered by the Emissions Trading System (ETS) within the overall limit set in national allocation plans for emission allowances and below the cap set for the whole EU ETS sector.

The EU has set an emission reduction target of cutting emissions by 20 per cent below 1990 levels by 2020. This reduction is implemented and the efforts shared among installations covered by the EU ETS and sources not included in the system, i.e. the non-ETS sector. The EU-wide objective of the ETS sector is to achieve a 21 per cent emissions reduction by 2020 compared to 2005 levels.

The current emissions trading period covers the years 2013–2020. In addition to carbon dioxide emissions, the scope of the Emissions Trading Directive also covers perfluorocarbon emissions from aluminium production and nitrous oxide emissions from chemical industry. National allocation plans are no longer used. Instead, the allocation of allowances is based on harmonised allocation methodologies for different sectors.

Auctioning is the default allocation method, and it applies to the production of electricity. As a rule, energy-intensive industries receive their emission allowances for free, in accordance with strict harmonised allocation rules.

Further information: mikko.paloneva(at)tem.fi, timo.ritonummi(at)tem.fi