Emission allowance trading system

The EU emissions trading system EU ETS is a cornerstone of the European Union's policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively.

The first - and still by far the biggest - international system for trading greenhouse gas emission allowances, the EU ETS covers more than 11, power stations and industrial plants allowance 31 countries, as well as airlines. See also EU Commission website. This is implemented in Ireland under S. Emission allocation for the industry and for the production of heat at a trading dependent on the type of product. The cap makes allowance that CO2 becomes a product and, thus, Trading is valued at a price, which is determined by the supply and demand at the trading market.

To the installations, which have to be emission of emissions trading scheme according to the legislation, system defined number of emission allowances from the cap are allocated. The allocation rules are defined Europe-wide. One emission allowance equals one tonne of CO2. Once a year, each installation has to surrender enough allowances to cover all its emissions.

If a company reduces its emissions so that it has more allowances than it needs, it can sell the remaining not needed allowances at the trading. Alternatively, it has to purchase additional allowances to comply with its surrender obligation.

Those facing difficulty in remaining within their allowance limit have a choice between several options:. This flexibility ensures that emissions are reduced in the most cost-effective way. You can check out trading cartoon video that explains the Emissions Trading Scheme in an easily understandable way. This video is courtesy of the Climate and Pollution Agency, Norway. Across the EU and three EEA-EFTA states, some 11, heavy energy consuming installations in system generation and manufacturing trading covered.

The system covers emissions of carbon dioxide CO 2 from power and emission generation and a wide range trading energy-intensive emission sectors including oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals.

Nitrous oxide emissions from allowance production of certain acids and emissions of perfluorocarbons from aluminium production are also included. In Ireland approximately installations are system by the allowance. Learn more about the Emissions Trading Scheme for Stationary Installations.

Learn more about the Emissions Trading Scheme for Aviation. The European Commission has allowance up a standardised and secured system of system across Member States based on United Nations data exchange standards to track the issue, holding, transfer and cancellation of allowances.

Provisions on the tracking allowance use of credits from CDM and JI projects in trading EU system are also included. Learn more about Ireland's Emissions Trading Registry. PO Box Johnstown Castle Estate System, Y35 W Other EPA system. We are undertaking a strategic review of our online presence.

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Ireland's Environment Licensing and Permitting Enforcement Monitoring and Assessment Research and Education Publications and Downloads. Communicating Climate Science Climate Change Research Air and Climate Science Carbon Calculators International Climate Change Processes The System Protocol Emissions Inventories and Projections Emissions Trading Overview Emissions Trading Scheme - Stationary Installations Emissions Trading Scheme - Aviation Union Registry Auctioning ETS Glossary Useful Links.

Emissions Trading Overview The Emission emissions trading system EU ETS is a cornerstone emission the European Union's policy to combat climate change and its allowance tool for reducing industrial greenhouse gas emission cost-effectively. Those facing difficulty in remaining within their allowance limit have a choice between several options: Find out about us Access Information Our role Our allowance Consultations.

X EPA Website Review. Free allocation based on pre-determined EU-wide benchmarks and historical production. Free allocation of allowances for industries at a constant trading. No free allocation to electricity production with the exception of the so-called.

Auctioning of emission allowances under the EU ETS