the EU Emissions Trading Scheme (EU ETS) submitted by other member
states to the European Commission (EC) was published today.
independent consultants ECOFYS, contains two levels of evaluation:
* high level evaluation focuses on progress towards meeting Kyoto
* an assessment of the development of emissions detailed
evaluation against all the criteria in the Emissions Trading
The main conclusions are:
with some exceptions, the caps imposed by member states are below
the expected business-as-usual emissions other member states' NAPs
show that the EU ETS is not being used to bring industry emissions in
line with the reductions needed to meet Kyoto targets many NAPs have
little information to judge the basis on which allocation levels have
The main conclusions echo previous concerns of DTI and Defra and
reiterate a call for the EC to be more transparent in how it has made
its own assessments of NAPs.
A copy of the report in full is available online at:
http://www.ecofys.co.uk and at
Background to the EU ETS
1. Further information on the background to the EU ETS can be found
on the Defra website at:
European Commission's decision making process on NAPs
2. On 7 July 2004 the European Commission announced its decisions
on the first eight NAPs. Those of Denmark, Ireland, the Netherlands,
Slovenia and Sweden were accepted unconditionally while those of
Austria, Germany and the UK were accepted conditionally. For the UK
this means providing further information on the details surrounding
the operation of the new entrant reserve and on the quantity of
allowances to be allocated to installations in Gibraltar.
3. Further information on these decisions is available on the Europa
4. The second set of decisions by the European Commission is expected
in September 2004. Member States which may be covered in this set
are: Belgium, Estonia, Finland, France, Italy, Latvia, Lithuania,
Luxembourg, Portugal, Slovakia and Spain.
Kyoto Project Mechanisms (JI & CDM)
5. Joint Implementation (JI) and the Clean Development Mechanism
(CDM) are project based emission reduction methods which involve
developing and implementing projects that reduce greenhouse gas
emissions overseas, thereby generating carbon credits that can be
used in international emissions trading markets. Specific provision
is made in the rules of the EU ETS to allow the use of carbon credits
from JI and CDM projects. The UK Government has set up the Climate
Change Projects Office (http://www.dti.gov.uk/ccpo) to encourage UK
participation in CDM and JI projects.
Background on ECOFYS and tendering process
6. Ecofys specialises in energy saving and renewable energy
solutions. As part of the Econcern group, they offer research and
consultancy services as well as product development. Further
information on the company can be found at http://www.ecofys.com.
7. Ecofys were contracted to produce an analysis of the NAPs for the
EU ETS for 2005 to 2007 following an open tender process in
compliance with Cabinet Office guidelines.