Application of the EU Emissions Trading Directive : analysis of national responses under Article 21 of the EU ETS Directive in 2014

The European Union (EU) emissions trading system (ETS) is one of the key climate policy instruments implemented in the EU to achieve its emission reductions objectives in a cost‑effective manner. The EU Emissions Trading Directive (EU, 2003, referred to hereafter as the 'EU ETS Directive'), and in particular Article 21 of the Directive, requires EU Member States to report every year to the Commission on the application of the directive. The Commission Implementing Decision (EU 2014a) sets out a detailed questionnaire to be addressed by the Member States in their annual reports to the Commission under Article 21 of the Directive. This report provides a synthesis of the countries' annual reports concerning the implementation of the EU ETS in 2014. Data included are for the year 2013 unless indicated otherwise. The EU ETS covers more than 12 000 energy‑using installations, consisting of power stations and other combustion plants with ≥ 20MW thermal (1) rated input (except hazardous or municipal waste installations). It also covers oil refineries; coke ovens; iron and steel production facilities; and installations involved in the production of cement clinker, glass, lime, bricks, ceramics, pulp, paper and board, aluminium, petrochemicals, ammonia, nitric acid, adipic acid and glyoxylic acid. In addition, the EU ETS covers facilities involved in CO2 capture, CO2 transport in pipelines, and geological storage of CO2. The ETS also covers aviation, but the coverage is limited to flights within the European Economic Area until 2016. In total, the EU ETS covers around 45% of EU greenhouse gas emissions (EEA, 2015). The EU ETS covers 28 EU Member States, as well as Norway, Iceland, and Liechtenstein (which are part of the broader European Economic Area).