European GHG emissions and the EU ETS Dr. Andreas Barkman Project manager GHG emissions and emission trading European Environment Agency.
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European GHG emissions and the EU ETS Dr. Andreas Barkman Project manager GHG emissions and emission trading European Environment Agency 1 European Environment Agency The European Environment Agency is the EU body dedicated to providing sound, independent information on the environment www.eea.europa.eu 2 EEA member and collaborating countries Member countries Collaborating countries EEA work on EU GHG emissions • Compiles the EU GHG inventory and reporting under UNFCCC and the Kyoto Protocol • Assesses progress towards Kyoto and 2020 targets • Assesses efficiency of polices and measures • Analyse the application and effect of the EU ETS and links to total GHG emissions • Provides GHG and EU ETS data in useful formats – data centre 4 EU-27 GHG trends 1990-2006 5 EU-15 GHG trends 1990-2006 6 EU-15 is capable of reaching the Kyoto target…… 7 ….but only through using: Kyoto mechanisms, carbon sinks and the EU ETS Current progress 2005 vs. base-year 0% 2006 projections 2007 projections Existing measures -0.6 % Existing measures -1.5 % -10% -12% 8 Kyoto mechanisms -2.5 % Total: -8.0 % Additional measures, carbon sinks and Kyoto mechanisms -5.5 % Carbon sinks -0.9 % -8% Existing measures -4.0 % Additional measures -4 % Kyoto mechanisms -2.5 % -6% Carbon sinks -0.9 % -4% Additional measures -4 % -2.0 % -2% 2007 projections no overdelivery Total: -11.4 % Total: -7.0 % The EU ETS - general • • • • • • • • 9 Cap and trade scheme Important instrument for EU to reach Kyoto commitments and any 2020 commitment Covers ca 40% of all GHG emission within EU-27 More than 10500 installations Pilot Phase 2005-2007 Kyoto phase 2008-2012 Post-2012 design and architecture under negotiations between European Parliament and European Council Any international post-2012 agreement may affect the EU ETS EU ETS brief legal context The linking Directive (2004) Registry Regulation (2004/2007) The EU ETS Directive (2003) Monitoring and reporting guidelines (2004/2007) 10 National allocation guidance MS Kyoto Protocol IET JI CDM EIT countries Linking Directive EU ETS Developing countries JI CDM Installation Installation Company 11 MS/AnnexB EU ETS Company EU ETS results: CO2 emissions are dominated by large emitters >500kt/year No. of installations by size large 8% Emissions by installation size zero 2% medium 21% mini small 1% 4% medium 14% mini 33% small 36% © EEA/ETC-ACC/Öko-Institut e.V. 12 zero 0% large 81% © EEA/ETC-ACC/Öko-Institut e.V. EU ETS results: 2005-2007 Absolute difference between allocation & verfied emissions 1 Combustion installations 30,000 2 Mineral oil refineries 3 Coke ovens 1000 EUA / kt CO2 25,000 4 5 6 7 8 9 99 20,000 15,000 10,000 Metal ore roasting or sintering installations Production of pig iron or steel Production of cement clinker or lime Manufacture of glass including glass fibre Manufacture of ceramic products by firing Production of pulp, paper and board Other activity opted-in 5,000 0 -5,000 -10,000 1 2 3 © EEA/ETC-ACC/Öko-Institut e.V. 13 4 5 6 ETS Sector 7 8 9 99 EU ETS results: 2005-2007 Allocation & verified emissions per installations size 1,800,000 1,600,000 1000 EUA / kt CO2 1,400,000 1,200,000 large medium Allocation Verified emissions emitters over 500 kt CO2 emissions emitters (50 to 500 kt CO2 emissions) small emitters (10 to 50 kt CO2 emissions) mini zero emitters below 10 kt CO2 emissions emitters with zero emissions 1,000,000 800,000 600,000 400,000 200,000 0 large medium © EEA/ETC-ACC/Öko-Institut e.V. 14 small mini zero EU GHG Target: -20% compared to 1990 -14% compared to 2005 EU ETS -21% compared to 2005 Non ETS sectors -10% compared to 2005 27 Member State targets, stretching from -20% to +20% 15 EU ETS post-2012 proposal (under discussion) • • • • • Cover all big industrial emitters: extension e.g. to chemical sectors and aluminium Extension to other GHG: nitrous oxide (fertilisers), perfluorocarbons (aluminium) Single EU-wide cap instead of 27 caps set by Member States More auctioning – especially for power generation Linear decrease of the cap • • • • • 16 predictable trend-line to 2020 and beyond can be adjusted to stricter target Aviation to be included in line with political agreement Non-compliance penalties (€100/ton CO2) to increase by inflation rate to keep deterrent effect Better harmonisation of Monitoring, Reporting and Verification through stronger legal settings Thank you for your attention! [email protected] See for more information the EEA web site: www.eea.europa.eu 17