FOREWORD 2016 was a year that shook the world and the European Union in particular. The new hope for multilateral climate cooperation under the 2015 Paris agreement received a blow with the election of a climate denier to the White House. The European Union, as an ongoing project for peace and prosperity, was shaken by a Brexit referendum […]
Reports & Studies
The EU is currently finalizing the implementation of its 2030 climate framework. This work includes a revision of the EU’s Emissions Trading System (EU ETS), the EU’s flagship climate instrument. The European Parliament (EP) and the Council adopted their positions on the EU ETS revision earlier this year and are currently holding talks to reach an agreement on how to design the system for the 2021-2030 period.
Executive Summary Around the world, governments are establishing carbon pricing systems to put a price-tag on greenhouse gas emissions and incentivize more climate friendly practices. The EU launched its own Emissions Trading System (EU ETS) in 2005. While the ETS is a necessary instrument to decarbonise the power and industry sectors in Europe, experience shows […]
Policy Brief: Too big to fail? Environmental responsibilities of the UNFCCC and ICAO processes for aviation’s new carbon market
Last year, states created an offsetting scheme to compensate for aviation’s pollution growth above 2020 levels. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is supposed to contribute to the temperature goals of the Paris Agreement. However, compensating for growing emissions does not reduce emissions overall, nor put the sector on a pathway to do so. ICAO will finalize details for the CORSIA by the end of 2017. Crucial elements include the type of credits allowed, registry design, and Monitoring, Reporting and Verification (MRV) rules.
The Paris Agreement marks a new era for international climate action in general, and specifically for international carbon markets. Though the agreement does not mention markets per se, Article 6 paragraph 4 establishes what has become to be known as the Sustainable Development Mechanism (SDM) which builds on and shares some features of the Kyoto flexible mechanisms namely the Clean Development Mechanism (CDM) and Joint Implementation (JI).
The 2015 Paris Agreement, which sets out the framework for global climate action after 2020, includes the establishment of the Sustainable Development Mechanism (SDM). The goals of the SDM are to promote higher ambition that contributes to emission reductions and sustainable development, and deliver an overall mitigation of greenhouse gas emissions.
EU Member States are currently negotiating Europe’s key legislation for climate action, known as the Effort Sharing Regulation. Covering 60% of the EU’s greenhouse gas emissions, the law will set binding national emission reduction targets for the 2021-2030 period for sectors such
as transport, buildings, agriculture and waste. In July 2016, the European Commission published the proposal for an Effort Sharing Regulation setting the basis for negotiations between EU ministers and Members of the European Parliament.
In February 2017, the European Commission presented a legislative proposal regarding coverage of aviation emissions by the EU’s Emissions Trading System (EU ETS). In response to the offsetting agreement reached in the International Civil Aviation Organisation (ICAO) in October of 2016, the Commission proposes to cover only intra-European flights with the EU ETS and to exclude flights entering and leaving Europe.
On 14 February 2017, the plenary of the European Parliament will vote on the revision of the EU Emissions Trading System (EU ETS) for the 2021-2030 period. Members will vote on the report of the environment committee (ENVI) which was adopted in December 2016. A key element of the compromise reached between all major political groups in ENVI is the introduction of a mechanism that requires importers of cement and clinker to also pay for their pollution, while ensuring that carbon costs are reflected in material prices.
This guide aims to build knowledge and understanding of the EU’s Effort Sharing Regulation for civil society organizations who have little or no prior experience with EU climate policies. It provides introductory knowledge on how the EU ETS is designed and how it functions. Increased awareness should ultimately empower civil society to get involved in the ETS process.