The following Environment guidance note provides comprehensive and up to date legal information covering:
Originally produced in partnership with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law, University of Edinburgh
The EU Emissions Trading System (EU ETS) is the largest ETS in the world by volume. It works on a cap-and-trade basis, where a limit is set on the total greenhouse gas (GHG) emissions allowed by all participant sectors covered by the scheme and this limit is converted into tradable allowances.
For more information, see Practice Notes:
EU ETS Directive 2003/87/EC—snapshot
EU Emissions trading system—outline
EU ETS Phase III UK implementation—legal framework, key obligations and administration
EU ETS Phase III UK implementation—allocation of allowances and auctioning
EU ETS Phase III UK implementation—compliance, enforcement and appeals
When is a greenhouse gas permit required?
On 22 November 2017 the Council of the EU announced endorsement of the provisional deal reached between the Estonian presidency and the European Parliament on 9 November 2017 on the reform of the EU ETS for the period after 2020 (Phase IV of EU ETS). The agreed text was approved by MEPs in a plenary vote in European Parliament on 6 February 2018. The text was formally approved by the Council of the EU on 27 February 2018 which was the final step in the legislative process. Directive 2018/410 was published in the Official Journal on 14 March 2018 and enters into force on
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