Originally produced in partnership with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law, University of Edinburgh ARCHIVED: This Practice Note has been archived and is not maintained. 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: • Emissions trading—overview • EU ETS Directive 2003/87/EC—snapshot • EU Emissions trading system—outline • EU ETS Phase III UK implementation—legal framework, key obligations and administration [Archived] • EU ETS Phase III UK implementation—allocation of allowances and auctioning [Archived] • EU ETS Phase III UK implementation—compliance, enforcement and appeals [Archived] • When is a greenhouse gas permit required under Phase III EU ETS? [Archived] Phase IV of the EU ETS runs from 2021 to 2030. It sees a cap on the total volume of emissions

Key information Ecodesign Directive Title Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (recast). Repealing Directive 2005/32/EC of the European Parliament and of the Council of 6 July 2005 establishing a framework for the setting of ecodesign requirements for energy-using products, without prejudice to the obligations of the Member States relating to the time limits for transposition into national law of the directive as set out in Annex IX, Part B of Directive 2009/125/EC.Directive 2008/28/EC of the European Parliament and of the Council of 11 March 2008, only Article 1. Entry into force 20 November 2009 National transposition See Eur-Lex list of national transposition measures, as provided by Member States Transposition deadline 20 November 2010 Amended by Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency Subject Ecodesign requirements Background Directive 2005/32/EC of the European Parliament

This Practice Note covers the requirements of Regulation (EU) 2024/1781 establishing a framework for setting ecodesign requirements for sustainable products, as in force from 18 July 2024. Products covered by product-specific delegated regulations made pursuant to the Ecodesign Regulation will have to comply with detailed ecodesign requirements (covering both performance and information requirements) in order to be placed on the EU market or placed into service within the EU. This Practice Note covers: • the scope of the Ecodesign Regulation • the key obligations attaching to different categories of economic operator • the process for adoption of product-specific regulations • detail on what product-specific regulations will include • digital product passports • conformity assessment procedures • prohibitions on planned performance degradation, premature obsolescence, and destruction of unsold consumer products, and • market surveillance activities and consequences of non-compliance Background The European Green Deal was launched in December 2019 as ‘a roadmap for making the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the

Key information Effort Sharing Regulation Title Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021–2030, contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) 525/2013 (Effort Sharing Regulation) Entry into force 9 July 2018 Transposition deadline N/A. It is a Regulation so is directly applicable in Member States.Note: Iceland and Norway have also agreed to implement the Effort Sharing Regulation, and have committed to equivalent targets Amendments Regulation (EU) 2023/857 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021–2030 contributing to climate action to meet commitments under the Paris Agreement, and Regulation (EU) 2018/1999. In force 16 May 2023 Subject Climate change, energy What does the Effort Sharing Regulation do? Regulation (EU) 2018/842 (the Effort Sharing Regulation) sets national emission reduction targets

One of the policies introduced across Europe to reduce carbon emissions and combat the treat of climate change. Running in three year phases the scheme began on 1 January 2005. Phase II from 2008-2012 coincides with the first protocol'>Kyoto Protocol commitment period.

Introduction of the ETS II The main EU Emissions Trading System (EU ETS) is governed by Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading (the EU ETS Directive). The EU ETS Directive establishes a legal framework which aims to promote reductions of greenhouse gas (GHG) emissions in a cost-effective and economically efficient manner. On 14 July 2021, the Commission adopted a suite of legislative proposals aimed at enabling the EU to achieve its emissions reductions targets of at least 55% less emissions against 1990 levels by 2030 and climate neutrality, or net-zero emissions, by 2050. The proposals, first announced under the European Green Deal in 2019 and known as the ‘Fit for 55’ package, included revisions to the main EU ETS, the EU ETS for aviation, and Decision (EU) 2015/1814 (the Market Stability Reserve Decision). Directive (EU) 2023/959 (the 2023 EU ETS Directive) amending the EU ETS Directive was published in the Official

EU ETS content—overview This Practice Note covers the key provisions of Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading, known as the EU Emissions Trading System (EU ETS), as applicable to the maritime transport sector. Directive (EU) 2023/959 amending the EU ETS Directive was published in the Official Journal on 16 May 2023, and extended the EU ETS to maritime transport activities on a phased basis from 1 January 2024. This note covers the scope of the EU ETS as it applies to maritime transport activities, and details the core obligations for shipping companies, including monitoring, reporting and verification requirements, and the process of surrender for shipping allowances. It also sets out how the EU ETS works in conjunction with Regulation (EU) 2015/757 (the EU Ship Emissions Monitoring (MRV) Regulation). See the following Practice Notes for further practical guidance on the various aspects of the EU emissions trading system: • EU Emissions trading system (ETS)—outline

EU ETS content—overview This Practice Note provides an outline of the EU emissions trading system (EU ETS), formerly known as the EU emissions trading scheme. It covers the legal framework underpinning the ETS and the background to the phased implementation of the system, as well as providing an overview of its scope, the key obligations placed on operators, the process of auctioning, free allocation, transfer and surrender of allowances, and the use of ETS revenues. It also explains the workings of linked legislation, beyond Directive 2003/87/EC, which support the functions of the EU ETS, including the Regulation establishing the EU carbon border adjustment mechanism (EU CBAM), the Market Stability Reserve Decision, the Union Registry Regulation, and market oversight measures. Please see the following Practice Notes for further practical guidance on the various aspects of the EU ETS: • EU Emissions Trading System (ETS) Phase IV—Directive 2003/87/EC • EU Emissions Trading System (ETS) for aviation • EU Emissions Trading System (ETS) for maritime transport • EU Emissions Trading System (ETS II) for buildings, road transport, and additional

Key information Recast EU Energy Efficiency Directive Title Directive (EU) 2023/1791 of the European Parliament and of the Council of 25 July 2023 on energy efficiency and amending Regulation (EU) 2023/955 (recast) (the recast EED) Entry into force 10 October 2023 (noting transposition deadline below), save for:—Article 37 (amending the Social Climate Fund Regulation (EU) 2023/955 with respect to the definition of energy poverty) which applies from 30 June 2024, and—Articles 13–16, 18 and 20, and Annexes II, IX, XII, XIII, and XIV which shall apply from 12 October 2025 Transposition deadline 11 October 2025—subject to the exceptions set out in Article 36 National transposition measures See Eur-Lex information on national transposition measures, as provided by Member States Subject Climate change; Climate targets; Energy efficiency; Energy savings; Energy performance of buildings Background to the original Energy Efficiency Directive (Directive 2012/27/EU) The original Energy Efficiency Directive (EED) (Directive 2012/27/EU) established a common framework for the promotion of energy efficiency within the EU to secure

Background and key objectives Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency (the recast EED) was published in the Official Journal on 20 September 2023. Member States were required to transpose the majority of provisions of the recast EED into national law by 11 October 2025 to allow for the application of the revisions from 12 October 2025, subject to some article-specific exceptions as detailed in Article 37. The existing Energy Efficiency Directive (Directive 2012/27/EU) has been repealed with effect from 12 October 2025. For more information on the position under the original EED, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The recast EED updates the EU’s energy efficiency framework to align it with the goal of achieving net zero by 2050. It increases the EU’s overall 2030 energy efficiency target, with the aims of reducing demand for new power generation capacity, cutting costs relating to storage, transmission and distribution, and reducing energy prices for consumers. Increased energy efficiency will work in

Background and key objectives Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency (the recast EED) was published in the Official Journal on 20 September 2023. Member States had to transpose the majority of provisions of the recast EED into national law by 11 October 2025 to allow for the application of the revisions from 12 October 2025, subject to some article-specific exceptions as detailed in Article 37. The existing Energy Efficiency Directive (Directive 2012/27/EU) has been repealed with effect from 12 October 2025. For more information on the position under the original EED, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The recast EED updates the EU’s energy efficiency framework to align it with the goal of achieving net zero by 2050. It increases the EU’s overall 2030 energy efficiency target, with the aims of reducing demand for new power generation capacity, cutting costs relating to storage, transmission and distribution, and reducing energy prices for consumers. Increased energy efficiency will work in conjunction with increased

Background and key objectives Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency (the recast EED) was published in the Official Journal on 20 September 2023. Member States were required to transpose the majority of provisions of the recast EED into national law by 11 October 2025 to allow for the application of the revisions from 12 October 2025, subject to some article-specific exceptions as detailed in Article 37. The existing Energy Efficiency Directive (Directive 2012/27/EU) has been repealed with effect from 12 October 2025. For more information on the position under the original EED, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The recast EED updates the EU’s energy efficiency framework to align it with the goal of achieving net zero by 2050. It increases the EU’s overall 2030 energy efficiency target, with the aims of reducing demand for new power generation capacity, cutting costs relating to storage, transmission and distribution, and reducing energy prices for consumers. Increased energy efficiency will work in