Phases (trading periods) of the EU ETS
European Union Carbon Market Glossary


 

The obligations imposed on entities covered by the European Union Emission Trading Scheme (EU ETS) are divided into certain trading periods (phases of the EU ETS), which are differentiated by specific rules regulating, among others, how the requirement to surrender emission allowances is shaped.

 

Four trading periods of the EU ETS were designed so far: the two, which are concluded and settled, the one that is ongoing (till 2020) and the last - projected.

 

The first trading period (or phase 1) lasted from the launching of the EU ETS in 2005 until the end of 2007.

 

The second trading period began in 2008 and ended in 2012.

 

The distinctive feature of the phase 1 and phase 2 was the amount of allowances to be allocated for free to industry was decided on national level.

 

In turn, the main difference between phases 1 and 2 and the current phase 3 (2013-2020) is that there is no free allocation for electricity production (with some exceptions for electricity modernisation in the new Member States pursuant to Article 10c of the EU ETS Directive) and that the free allocation to industry is based on EU harmonised rules outlined in the Benchmarking Decision.

 

Pursuant to the European Commision's Proposal for a Directive of the European Parliament and of the Council amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments of 15 July 2015 (COM(2015) 337 final) 2015/148 (COD) the fourth trading period of the EU ETS in the years 2021 - 2030 is also envisioned.

 

See here more on the post-2020 EU low carbon framework

 

 

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Last Updated on Friday, 08 April 2016 13:21
 

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