Guide

Meet EU Emissions Trading System requirements

EU Emissions Trading System: who is affected

The European Union Emissions Trading System (EU ETS) affects installations in industrial sectors which produce significant quantities of greenhouse gases, such as:

  • power stations
  • refineries
  • offshore - eg oil refineries
  • iron and steel production
  • cement and lime manufacturing
  • paper manufacturing
  • food and drink processing
  • glass production
  • ceramics production
  • engineering
  • vehicle manufacturing

Other organisations may also be covered by the EU ETS, including universities and hospitals.

You can download guidance on which installations are covered by the EU ETS from the Department of Energy & Climate Change (DECC) website (PDF, 158K).

You can also email the Northern Ireland Environment Agency (NIEA) EU ETS helpdesk at emissions.trading@daera-ni.gov.uk.

Businesses affected in the future

From 2012, aviation will also be included in the EU ETS. For existing aircraft operators there is a requirement to monitor and report emissions from 1 January 2010.

From 2013, the EU ETS will be expanded to cover a number of other industry sectors including:

  • production of bulk organic chemicals
  • production of hydrogen
  • production of ammonia
  • production of aluminium
  • production of nitric, adipic and glyoxylic acid
  • capture, transport and geological storage of carbon dioxide emissions

The EU ETS will also be extended to include other greenhouse gases - such as perfluorocarbons and nitrous oxide - for some industry sectors.

During this time, the revised EU ETS Directive will also provide for:

  • a centralised EU-wide cap on emissions
  • an increase in auctioning levels with 100 per cent auctioning to the power sector in the UK
  • a non-legally binding commitment from EU member states to spend at least half of their auctioning revenues to work on climate change
  • free allocated allowances to those industrial sectors based on product benchmarks
  • sectors that are at risk of relocating outside of the EU due to the carbon price to receive 100 per cent of the benchmarked allocation for no cost
  • sectors not at risk to receive 80 per cent of their benchmarked allocation at no charge in 2013, reduced to 30 per cent in 2020 and 0 per cent in 2027