EU ETS publications and research

This area of the site lists various useful documents and research carried out at different stages on the EU Emissions Trading System.

April 2009: National Audit Office (NAO) report on the European Union Emissions Trading Scheme covering developments since 2007 (NAO website)


Phase I

Compliance and results:

  • Sector-level summary of 2007 UK results
  • EU ETS - UK results 2006 report February 2008, containing:
    • a summary of results and key factors that influenced UK emissions and sector surpluses/deficits in 2006
    • an outline of results for other Member States
    • a discussion of preliminary conclusions from industry and Government (from February 2008 report) 

Independent reports on Phase I commissioned by the UK Government: 


Phase II

How the Phase II NAP was created

Regulatory impact assessments for Phase II: 

Compliance and results

Phase II emissions projections

Energy and carbon dioxide emissions projections are used to inform the Climate Change Programme, the Energy review and the National Allocation Plan for the EU ETS. Information and documents relating to these projections: 

EU Emissions Trading Scheme Phase II - CO2 Emissions Projections Consultation (BIS archived web content) 

Research on output growth rates and carbon dioxide emissions of the industrial sectors of EU ETS: post consultation and review by Oxford Economic Forecasting - August 2006

These projections are used in the development of the UK National Allocation Plan for Phase II of the System.

Phase II costs of compliance

DECC and the Environment Agency commissioned Aether to carry out the following study to assess the cost to UK operators of complying with the EU ETS:


Phase III

June 2011: UK response to the European Commission consultation on New State aid Guidelines in the context of the amended EU Emissions Trading System

The questionnaire was completed as DECC's response to the European Commission consultation on New State aid Guidelines. In summary the UK considers that the risk of carbon leakage, as a result of EU ETS indirect costs, is limited to a small number of sectors. As there is a significant risk of intra-EU competitive distortion if some Member States choose to compensate sectors while others do not, we consider that the list of eligible sectors should be equally limited and that maximum levels of compensation should be calculated on the basis of a robust formula to ensure the incentive to abate is maintained.

September 2010: Benchmarking as an allocation methodology for heat in Phase III of the EU Emissions Trading System (EU ETS)

The study was commissioned by DECC to look at some of the issues involved in using a heat benchmark to allocate allowances in Phase III where no product benchmark is developed, such as the possible level of the heat benchmark and the method by which you allocate allowances for heat that crosses installation boundaries. It was undertaken by AEA , with the majority of the analysis being undertaken during autumn/winter 2009.

September 2010: Assessment of degree of carbon leakage in light of an international agreement on climate change

The study was commissioned by DECC to investigate the impact of an increased EU greenhouse gas reduction target on the risk of carbon leakage. The study shows that for those sectors studied, a move to increase the EU’s 2020 greenhouse gas reduction target from 20% to 30% would not significantly reduce EU output. The study was carried out by Climate Strategies, Cambridge Econometrics and Entec UK.

February 2010: Benchmarking as an allocation methodology in the upstream oil and gas industry from 2013

The study was commissioned by DECC in the UK and the Ministry of Economic Affairs in The Netherlands to investigate whether benchmarking as an allocation method for Phase III for the upstream oil and gas industry would be feasible. It was carried out by Entec UK Ltd, with the main research and analysis for the study undertaken in autumn/winter 2009.

April 2009: Impact Assessment on the EU Climate and Energy package and the revised EU ETS Directive

July 2008: The ‘EU Emissions Trading Scheme – further approaches to benchmarking in steel and cement sectors’ study has been published on the Environment Agency’s website.

The study was commissioned by Defra, the Environment Agency and the Department for Business, Innovation & Skills (BIS) to investigate benchmarking as an allocation method for Phase III. It was carried out by Entec UK Ltd, with the main research and analysis for the study undertaken in autumn/winter 2007. 

The Environment Agency have also produced a summary version of the report.


Aviation


 

An evidence review of the EU Emissions Trading System, focussing on effectiveness of the system in driving industrial abatement

A literature review by Imperial Consultants that looks at evidence on the effectiveness of the EU ETS in driving industrial abatement. This review broadly considers evidence on whether the EU ETS has driven abatement, which elements of the EU ETS drive abatement and how the EU ETS interacts with other policies. The report also identifies evidence gaps and suggests some directions for future research.

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