The future elements of the EU Emission Trading Scheme (IP/A/ITRE/FWC/2006 -087/lot 4/C1/SC3)

On 1 January 2005, the EU Emission Trading Scheme (EU ETS) commenced. The legislation behind the scheme is the European Commission’s Directive 2003/87/EC, within which Article 30 requires a review report of the EU ETS should be submitted to the European Parliament and the Council. In response to the requirements of Article 30, the Commission published a Communication “Building a global carbon market” (1), dated 13th November 2006. In this communication the Commission argued the need for experience and evaluation of the key issues. It therefore established a review process, involving consultation with stakeholders, with a view to producing legislative proposals that would take effect at the start of the third trading period, i.e. at the start of 2013. The consultation process would be carried out through a separate Working Group on the Review of the EU ETS within the framework of the European Climate Change Programme (ECCP). The Communication committed to producing a legislative proposal in 2007.