22 October 2010 14:50 [Source: ICIS news]
LONDON (ICIS)--The European Commission has pushed up its limit on the number of emission allowances that will be available under the EU Emissions Trading System (EU ETS) in 2013, the executive body said on Friday.
The cap for 2013, the first year of the 2013-2020 trading period, has now been set at 2.039bn allowances, the Commission said. Each allowance represents the right to emit one tonne of carbon dioxide (CO2) or the equivalent amount of other greenhouse gases.
In July, the Commission adopted a first cap of 1.927bn based on the scope of the current trading period, 2008-2012.
It said the new figure had been adjusted to take into account the new sectors and further greenhouse gases that would be included in the scope of the scheme from the next trading period.
This included the production of bulk organic chemicals, hydrogen, ammonia and aluminium, and new gases such as nitrous oxide from the production of nitric and adipic acid and perfluorocarbons from the production of aluminium.
“The application of [the EU ETS] each year will result in a 21% fall in emissions from the 2005 level by 2020,” the Commission said.
“The cap has been set on the basis of the 2009 climate and energy package of legislation, which requires a 20% cut in EU greenhouse gas emissions by 2020 from 1990 levels,” it added.
The executive body said the cap would have to be revised downwards if a decision was taken to increase the emission reduction target to 30%, as the EU had committed to do if the conditions were right.
The Commission has set benchmarks for 12 chemicals segments that will be used under the revised EU ETS to determine which producers receive emissions allowances. Full details of the allowances are expected early next year.
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