A strong carbon market guides investors and industry in their transition from fossil fuels. ĮU countries view the emissions trading scheme as necessary to meeting climate goals. The EU commission proposes in its "Fit for 55" package to increase the EU ETS reduction target for 2030 to −61% compared to 2005. The emission reductions to be achieved over this period are unclear as of November 2021, as the European Green Deal necessitates tightening of the current EU ETS reduction target for 2030 of −43% with respect to 2005. The fourth phase started in January 2021 and will continue until December 2030. This target has been reached six years early as emissions in the ETS fell to 1.812 billion (10 9) tonnes in 2014. Compared to 2005, when the EU ETS was first implemented, the proposed caps for 2020 represents a 21% reduction of greenhouse gases. The third trading period lasted from January 2013 to December 2020. The second trading period ran from January 2008 until December 2012, coinciding with the first commitment period of the Kyoto Protocol. The first ETS trading period lasted three years, from January 2005 to December 2007. The scheme has been divided into a number of "trading periods". This allows the system to find the most cost-effective ways of reducing emissions without significant government intervention. Conversely, if an installation emits less than its allowance, it can sell its leftover credits. In order to exceed its emissions allowance, an installation must purchase allowances from others. Installations must monitor and report their CO 2 emissions, ensuring they hand in enough allowances to the authorities to cover their emissions. EU Allowances for emissions are then auctioned off or allocated for free, and can subsequently be traded. Under the "cap and trade" principle, a maximum (cap) is set on the total amount of greenhouse gases that can be emitted by all participating installations. It covers around 45% of the EUs greenhouse gas emissions. Cap and trade schemes limit emissions of specified pollutants over an area and allow companies to trade emissions rights within that area. The European Union Emissions Trading System ( EU ETS) is a "cap and trade" scheme intended to lower greenhouse gas emissions. Price of CO 2 in the EU Emissions Trading System
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |