The European Union Emissions Trading Scheme (EU ETS) began 1st January 2005 - Phase III of the Scheme commenced on 1st January 2013.

The EU ETS scheme applys to your facility if you operate:

  • Combustion installations > 20MW thermal input (except municipal and hazardous waste incinerators)
  • Mineral oil refineries
  • Coke ovens
  • Steel manufacturing installations > 2.5tonnes/hr
  • Cement production installations > 500t/d
  • Lime production installations > 50t/d
  • Glass and glass fibre installations > 20t/d
  • Ceramic manufacturing installations > 75t/d or a kiln capacity > 4M3 (and with a setting density per kiln > 300kg/m3
  • Pulp and paper installations > 20t/d

Note though that combustion units over 20MW are covered by the scheme, no matter what industrial process they are linked with (with the exception of waste incinerators).


EU ETS History

The scheme ran from 2005 until 2012 in two phases:

  • Phase 1 (1st January 2005 to 31st December 2007)
  • Phase 2 (1st January 2008 to 31st December 2012)  

Phase III (1 January 2013 to 31 December 2020)

The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UKs scheme to lower compliance costs for small emitters and hospitals.

The EU cap will reduce the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by 2020. The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards.


What if your facility is affected?

As an affected facility, you will be required to own a permit to operate. This will be separate from the allowances that you will be issued under the scheme. The allowances define your CO2 emissions target and are transferable. The permit is a licence to operate and is not transferable. The UK intends to implement the directive through a modification to the PPC regulations.

Details of the scheme can be found on the following websites:

Contact us

If you think you might be affected and would like Jacobs to help, please click here to email us with your contact details and one of our team will speak with you.

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