EU Emissions Trading Scheme Phase III (2013-2020)

EU Emissions Trading Scheme Phase III (2013-2020) – Public consultation on the free allocation of GHG allowances to relevant installations in Ireland.
Please note:- Consultation closed on 4th November 2011

The revision of the EU Emissions Trading Scheme under Directive 2009/29/EC has made substantial changes to the scope of the scheme (see Annex 1 of the Directive for a list of activities covered) and to the level of free allocation of allowances to installations covered by the scheme. Full details of the changes are available on the European Commission: Emissions Trading System (EU ETS) web pages.


The revised Directive allows free allocation to all sectors except installations for the production of electricity. This means that both power station operators and Combined Heat and Power plant operators will need to buy allowances to cover emissions from electricity production within the installation in the period 2013-2020.

All other emissions will continue to be partly covered by free allocation on the basis of EU harmonised rules.

Industrial sectors will be allocated allowances for free on the basis of product benchmarks. The benchmarks are set on the basis of the average of the top 10% most greenhouse gas efficient installations in the EU. In cases where it was not possible to elaborate a product benchmark a fall back approach using a heat, fuel or process benchmark is applied.

Sectors deemed at significant risk of relocating production outside of the EU due to the carbon price (i.e. “exposed to carbon leakage”) will receive 100% of the benchmarked allocation for free from 2013 to 2020 unless their carbon leakage exposure status changes. Sectors not deemed at significant risk of carbon leakage will receive 80% of their benchmarked allocation for free in 2013, declining to 30% in 2020.

The benchmarks and the rules governing allocation were agreed by the Member States and subject to the co-decision process and published in the Official Journal of the EU  - Commission Decision of 27 April 2011 determining transitional Union-wide rules for harmonised free allocation of emission allowances.  More information is also available on the European Commission: Emissions Trading System (EU ETS) web pages.

The EPA has gathered verified data from all holders of GHG permits and has determined the preliminary free allocation for each operator.  These numbers are subject to scrutiny by the European Commission and if the total sum of allocations to eligible installations across Europe exceeds the cap for the trading period, a cross sectoral correction factor will be applied to the preliminary allocations  in accordance with Article 10a(5) of the ETS Directive.

Preliminary allocations to on-site electricity generators in respect of heating or cooling (i.e. CHP plants) will be  subject to a linear reduction factor (of 1.74% per annum)  in accordance with Article 10a(4) of the Directive and will not be subject to the cross sectoral correction factor.

The resulting list of preliminary allocations to each installation and accompanying information on how the benchmarks were applied in each individual installation is called the National Implementation Measures (NIMs).

The EPA is now publishing the draft preliminary free allocations for a period of public consultation.

This list contains the preliminary allocation per installation in accordance with Article 10(7) of the Commission Decision, prior to the application of either the cross sectoral correction factor or the linear reduction factor.

Preliminary allocations given in the list for the years 2015-2020 are subject to variation if the carbon leakage status is changed in accordance with Article 10a(13) of Directive 2003/87/EC.

Anyone can make a submission in relation to this draft allocation list. Please read the accompanying draft allocation list notes below in order to understand the data better.

Note 1:
Carbon leakage and multi-product installations:  For installations where the product is considered subject to carbon leakage the preliminary allocation does not change from year to year. However, many sites involved in the EU ETS produce more than one product. Some products may be considered exposed to carbon leakage and others not exposed. Thus for these installations the total preliminary allocation will vary across the period as it is made up of both a non-carbon leakage product sub-installation  subject to the  80% to 30% reduction and a carbon leakage sub-installation which is not.

Note 2:
Electricity generator status: All power stations are electricity generators. All CHP plants where the only Annex 1 activity on site is “combustion of fuels” and where the production of electricity is greater than the on-site consumption of electricity are considered electricity generators for the purposes of Directive 2009/29/EU (see Article 3 (u)).

You may download the list of preliminary free allocations to GHG permit holders in accordance with Commission Decision 2011/278/EU at this link.

Please note:- Consultation now closed

Submissions should be made in writing no later than 5 pm on Friday 04 November 2011 to:

EU ETS 2013-2020 Draft Allocations Public Consultation
Climate Change and Environmental Research Unit,
Office of Climate, Licensing, Research and Resource Use,
Environmental Protection Agency,
McCumiskey House,
Richview,
Clonskeagh Road,
Dublin 14, Ireland
.

Submissions may also be made by email to ghgpermit@epa.ie with the heading EU ETS 2013-2020 Draft Allocations Public Consultation in the subject field, to arrive no later than 5 pm on Friday 04 November 2011.