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EUAs' validity

 

 

Rules on carbon allowances' validity between trading periods of the EU ETS will be significantly modified as from 2021.

 

Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments has amended Article 13 of the EU ETS Directive - see the boxes below.

 

As a result, the emission allowances will no more be replaced between periods, but will be valid indefinitely.

 

According to the answer given by the Commissioner Arias Cañete on 10 December 2018 on behalf of the European Commission (005394/2018) to the European Parliament question:


“The current legislative framework of the EU Emissions Trading System (EU ETS) does not allow for restricting the possibility of carrying over emission allowances from one trading period to the following period (known as ‘banking’).
The body of scientific research on this topic concludes that restricting the possibility to bank allowances would undermine the efficiency of an emission trading system as a policy tool that reduces emissions in the most cost-efficient manner. In light of this, the Commission does not intend to introduce expiry dates for ETS allowances in the future.”

 

 

 

EU ETS Directive - third trading period (2013 - 2020)

 

"Article 13 Validity of allowances

 

1. Allowances issued from 1 January 2013 onwards shall be valid for emissions during periods of eight years beginning on 1 January 2013.

 

2. Four months after the beginning of each period referred to in paragraph 1, allowances which are no longer valid and have not been surrendered and cancelled in accordance with Article 12 shall be cancelled by the competent authority.

 

Member States shall issue allowances to persons for the current period to replace any allowances held by them which are cancelled in accordance with the first subparagraph."

 

 

 

 

 

EU ETS Directive - fourth trading period (2021-2030)

 

"Article 13 Validity of allowances

 

Allowances issued from 1 January 2013 onwards shall be valid indefinitely. Allowances issued from 1 January 2021 onwards shall include an indication showing in which ten-year period beginning from 1 January 2021 they were issued, and be valid for emissions from the first year of that period onwards."

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

EU ETS Directive, Article 13

 

Directive (EU) 2018/410 of the European Parliament and of the Council of 14 March 2018 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments

 

Answer of the Commissioner Arias Cañete on 10 December 2018 on behalf of the European Commission (005394/2018) to the European Parliament question

 

 

 

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    Links    

 

 

 

Post-2020 EU low carbon framework.

 

 

 

 

Last Updated on Saturday, 15 December 2018 11:37
 

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