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ETS

D2.3.3.2 EmissionTradeSchemes UGOT 07Sept09.pdf
SKEMA Policy Study EU ETS Phase 3.pdf

Zoi Nikopoulou - UGOT

The Kyoto Protocol introduced the concept of emissions control to a global audience. Under this agreement, in 2005 the EU established a European Trading Scheme (ETS) for trading carbon dioxide (CO2).

But ‘cap-and-trade’ programs were already in operation in the US, where nitrogen oxides (NOx) and sulphur oxides (SOx) had been traded since 1994. In fact, in Los Angeles ships can also participate, exchanging credits with land installations. US EPA proclaims their success.

 

The European Union’s Emission Trading Scheme (EU ETS) currently covers most large industrial installations, but not as yet transport.          However, the European Commission is currently preparing a report on how aviation could be brought into the EU ETS. The  other transport sectors including maritime will also come into the spotlight as consideration is soon given to expanding the EU ETS after 2012. There are many options for how emissions trading could be applied to the transport sector(s). Such a scheme could cover all transport sectors or separate schemes for sub sectors such as road or maritime transport. The scheme could be ‘open’ i.e. linked to the EU ETS and other trading systems, or ‘closed’ i.e. restricted to the sector itself. Then there are a wide number of other design options and criteria to consider. Maritime transport is being accounted for the first time for its emissions – mainly NOx and SOx- regulation and policy are being formed.

 

The study addresses the following:

1.     the theoretical framework of emission trading including review of policy instruments,  measurements on emission outputs and depositions in order to frame environmental necessities, policy ambitions and  possible caps for new schemes

2.     examples of trading schemes around the world for regulated sectors

3.     potential options for a  Maritime transport trading scheme particularly  within the environmentally sensitive seas of the European North.

 


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   Glossary Terms

 

Acidification
Acidification is the build-up of excess acids into soils, waters, and air.
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Allowance (or permit)
Permission to emit one credit of the gas within a specified time 5. Cap: the maximum allowable emissions over a regulated area and within a specified time, often tautological with the regulated (capped) area.
http://en.wikipedia.org/wiki/EU_Allowances
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Banking (emission trading)
The possibility to carry over unsold emission reduction credits from one period to another.
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Cap (emission trading)
The maximum allowable emissions over a regulated area and within a specified time, often tautological with the regulated (capped) area.
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Carbon credit
A generic term to assign a value to a reduction or offset of greenhouse gas emissions. A carbon credit is usually equivalent to one tonne of carbon dioxide equivalent (CO2-e). A carbon credit can be used by a business or individual to reduce their carbon footprint by investing in an activity that has reduced or sequestered greenhouse gases at another site.
http://en.wikipedia.org/wiki/Carbon_credit
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Carbon dioxide (CO2)
The most abundant of the greenhouse gases, produced as a by-product of oil and gas production, burning fossil fuels and biomass. All animals, plants, fungi and microorganisms also produce CO2. It has a global warming potential of 1.
http://en.wikipedia.org/wiki/Carbon_dioxide
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Emission reduction credit
A tradable emission unit deriving from reducing further than the requirement
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European Union Greenhouse Gas Emission Trading Scheme
In January 2005 the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) commenced operation as the largest multi-country, multi-sector Greenhouse Gas emission trading scheme world-wide. The scheme is based on Directive 2003/87/EC, which entered into force on 25 October 2003.
http://en.wikipedia.org/wiki/European_Union_Emission_Trading_Scheme
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European Union Greenhouse Gas Emission Trading Scheme
In January 2005 the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) commenced operation as the largest multi-country, multi-sector Greenhouse Gas emission trading scheme world-wide. The scheme is based on Directive 2003/87/EC, which entered into force on 25 October 2003.
http://en.wikipedia.org/wiki/European_Union_Emission_Trading_Scheme
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Externality
Externality of an economic transaction is an impact on a party that is not directly involved in the transaction. In transport, externalities associated with environmental impact are becoming important in comparing different modes of transport.
http://en.wikipedia.org/wiki/Externalities
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Greenhouse gases (GHG)
Gases on the earth’s atmosphere which absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6).
http://en.wikipedia.org/wiki/Greenhouse_gas
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Hot air
Excessive allowances often due to loss of industrial output or de-industrialization.
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Hot spot
Localised high emissions due to trading and/or due to a geographical swift to where emissions are physically reduced.
http://en.wikipedia.org/wiki/Emissions_trading
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Kyoto Protocol
The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions .These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012.
http://en.wikipedia.org/wiki/Kyoto_Protocol
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Kyoto Protocol
The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions .These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012.
http://en.wikipedia.org/wiki/Kyoto_Protocol
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NOx
Emissions of nitrogen oxides are produced during combustion. They contribute to a number of problems such as, human health eutrophication and ground level ozone.
http://en.wikipedia.org/wiki/Air_pollutant
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SOx
Oxygen compounds of sulphur. The family of sulphur oxides emissions, mainly consisting of SO2, is produced during combustion due to content of sulphur in the fuel.
http://en.wikipedia.org/wiki/Sulfur_dioxide
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  Additional Information for Emission trading schemes
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   Subject News
  08/08/2011 - The International Chamber of Shipping (ICS) has stated its clear opposition to the inclusion of shipping in the European Union's Emission Trading Scheme
24/03/2011 - Integration of Marine Transport into the European Emissions Trading Scheme
23/09/2009 - Shipping bodies back cap and trade scheme to cut emissions
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   Linked Topics
  Short Sea Shipping developments

Regulatory Framework
 
   Related Documents
  tradingtypes.pdf
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   Lessons Learned
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   Information Sources
  EU greenhouse gas emission allowance trading scheme
USA Allowance Trading
The New Zealand emissions trading scheme
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