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Introduction: Emission Trading in the EU
The EU has agreed to establish a cap-and-trade system to limit CO2 emissions from large industrial sources. This socalled Emissions Trading System (ETS) came into effect on the 1st January 2005. CAN-Europe welcomes this framework that places absolute limits on these emissions while allowing companies in covered sectors to innovate. However, the effectiveness of the system depends critically on member states using the national allocation plans to impose credible and ambitious reduction targets. As the Directive makes clear, this process has to be transparent and open to public participation. Targets must be in line with the domestic implementation of each country's Kyoto commitment.
What is the Emissions Trading Directive
The Parliament voted on 2nd July 2003 to agree a compromise with Council on the Directive on emissions trading in the EU. This deal was adopted at the Environment Council on October 13th. The text of the directive as published in the Official Journal is available here - see also the European Commission's ETS pages.The main elements of the EU Emissions Trading System (ETS) are as follows:...
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