An introductory guide
The EU ETS is one of the policies that has been introduced across Europe to tackle emissions of carbon dioxide and other greenhouse gases and combat the serious threat of climate change. The scheme commenced on 1 January 2005. The first phase runs from 2005-2007 and the second phase runs from 2008-2012 to coincide with the first Kyoto Commitment Period. Further five-year periods are expected subsequently.
The scheme works on a "Cap and Trade" basis. EU Member State governments are required to set an emission cap for all installations covered by the Scheme. Each installation is allocated allowances for the particular commitment period in question. The number of allowances allocated to each installation for any given period, (the number of tradable allowances each installation will receive), is set down in a document called the National Allocation Plan. Anyone who is not covered by the Scheme is able to open an account on the registry and buy and sell allowances.
This guide aims to provide some assistance for operators in meeting their compliance obligations:
- An Operator’s Guide to the EU Emissions Trading Scheme:The steps to compliance – May 2006
- Full version
(253 KB) - Reduced size guide with fewer pictures (184 KB)
- Full version
Please note that this is an updated version of the February 2006 document. Key amendments relate to the design of the guide, rather than any changes to the facts.
Page last modified: 3 July 2008
Page published: 8 September 2003