Transcription of EU ETS Handbook
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EU ETS Handbook
Climate Action iStock EU ETS Handbook 1/138 Contents Using the guide 3 What is the EU ETS? 4 Benefits of cap-and-trade 5 History of the EU ETS 7 EU legislative structure and the EU ETS 9 How does the EU ETS contribute to meeting the EU s climate policy goals? 12 How does the EU ETS contribute to a competitive economy? 14 How does the EU ETS work? 16 Main EU ETS features over the years 18 Design structure 20 What GHG emissions does the EU ETS cover? 20 What is the cap on GHG emissions? 22 How are allowances allocated? 24 How allocation has evolved 26 Auctioning in the EU ETS 28 Auctioning bodies and venues 29 Distribution of auctioning rights 31 Auctioning in practice 32 Use of auction revenues 35 Transitional free allocation for modernisation of the power sector (Article 10c) 36 NER300 fund for demonstration projects 38 Free allocation in the EU ETS 40 Timing of determining free allocation 41 Free allocation shifts compliance costs 42 From national allocation to EU-wide allocation; NAPs to NIMs 4
3/138 Using the guide • This guide provides detailed information about the EU Emissions Trading System (EU ETS), including information about how the system was designed and how it operates.
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