L275/32N25.10.2003of 13 October 2003establishing a scheme for greenhouse gas emission allowance trading within the Community andamending Council Directive 96/61/EC(Text with EEA relevance)THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE(3)The ultimate objective of the United Nations FrameworkEUROPEAN UNION,Convention on Climate Change,which was approved byCouncil Decision 94/69EC of 15 December 1993Having regard to the Treaty establishing the European Com-munity,and in particular Article 175(1)thereof,work Convention on Climate Change ()is to achievestabilisation of greenhouse gas concentrations in theatmosphere at a level which prevents dangerous anthro-Having regard to the proposal from the Commission ()pogenic interference with the climate system.Having regard to the opinion of the European Economic andSocial Committee ()Once it enters into force,the Kyoto Protocol,which wasHaving regard to the opinion of the Committee of theapproved by Council Decision 2002/358/EC of 25 AprilRegions ()2002 concerning the approval,on behalf of theEuropean Community,of the Kyoto Protocol to theUnited Nations Framework Convention on ClimateActing in accordance with the procedure laid down in ArticleChange and the joint fulfilment of commitments there-251 of the Treaty ()under ()will commit the Community and its MemberStates to reducing their aggregate anthropogenic emis-Whereas:sions of greenhouse gases listed in Annex A to theProtocol by 8%compared to 1990 levels in the period2008to2012.The Green Paper on greenhouse gas emissions tradingwithin the European Union launched a debate acrossEurope on the suitability and possible functioning ofgreenhouse gas emissions trading within the EuropeanUnion.The European Climate Change Programme hasThe Community and its Member States have agreed toconsidered Community policies and measures through afulfil their commitments to reduce anthropogenic green-multi-stakeholder process,including a scheme for green-house gas emissions under the Kyoto Protocol jointly,inhouse gas emission allowance trading within theaims to contribute to fulfilling the commitments of theCommunity (the Community scheme)based on theGreen Paper.In its Conclusions of 8 March 2001,theEuropean Community and its Member States more effec-Council recognised the particular importance of thetively,through an efficient European market in green-European Climate Change Programme and of workhouse gas emission allowances,with the least possiblebased on the Green Paper,and underlined the urgentneed for concrete action at Community level.The Sixth Community Environment Action Programmeestablished by Decision No 1600/2002/EC of theCouncil Decision 93/389EEC of 24 June 1993 for aEuropean Parliament and of the Council (identifiesmonitoring mechanism of Community CO,and otherclimate change as a priority for action and provides forgreenhouse gas emissions ()established a mechanismthe establishment of a Community-wide emissionsfor monitoring greenhouse gas emissions and evaluatingtrading scheme by 2005.That Programme recognisesprogress towards meeting commitments in respect ofthat the Community is committed to achieving an 8%these emissions.This mechanism will assist Memberreduction in emissions of greenhouse gases by 2008 toStates in determining the total quantity of allowances to2012 compared to 1990 levels,and that,in the longer-allocate.term,global emissions of greenhouse gases will need tobe reduced by approximately 70%compared to 1990levels.Community provisions relating to allocation of allow-90JC75E26.3.2002,p.33ances by the Member States are necessary to contributeto preserving the integrity of the interal market and to)O이C 192, 12.8.2002, p. 59.(Opinion of the European Parliament of 10 October 2002 (not yetavoid distortions of competition.publishicial Journal).Council Common Position of 18March 2003 (O]C 125 E.27.5.2003.p.72).Decision of the0JL33,7.2.1994,p.11.European Parliament of 2 July 2003(notpublished in the Offi-)0JL130,15.5.2002,p.1cial Joumal)and Council Decision of 22 July 2003.()O]L 167,9.7.1993,p.31.Decision as amended by Decision 1999/25.10.2003NL275/33Member States should have regard when allocatingallowances to the potential for industrial process activ-trading as Parties to the Kyoto Protocol with any otherities to reduce emissions.Party included in Annex B thereto.(9Member States may provide that they only issue allow-ances valid for a five-year period beginning in 2008 topersons in respect of allowances cancelled,corre-(18)Linking the Community scheme to greenhouse gas emis-sponding to emission reductions made by those personssion trading schemes in third countries will increase theon their national territory during a three-year periodcost-effectiveness of achieving the Community emissionbeginning in 2005.reductions target as laid down in Decision 2002358ECon the joint fulfilment of commitments.(10)Starting with the said five-year period,transfers of allow-ances to another Member State will involve corre-sponding adjustments of assigned amount units underthe Kyoto Protocol.(19)Project-based mechanisms including Joint Implementa-tion (D)and the Clean Development Mechanism (CDM)are important to achieve the goals of both reducingglobal greenhouse gas emissions and increasing the cost-(11)Member States should ensure that the operators ofeffective functioning of the Community scheme.Incertain specified activities hold a greenhouse gas emis-accordance with the relevant provisions of the Kyotosions permit and that they monitor and report theirProtocol and Marrakech Accords,the use of the mechan-emissions of greenhouse gases specified in relation toisms should be supplemental to domestic action andthose activities.domestic action will thus constitute a significant elementof the effort made.(12)Member States should lay down rules on penaltiesapplicable to infringements of this Directive and ensurethat they are implemented.Those penalties must beeffective,proportionate and dissuasive.(20)This Directive will encourage the use of more energy-efficient technologies,including combined heat andpower technology,producing less emissions per unit of(13)In order to ensure transparency,the public should haveoutput,while the future directive of the European Parlia-access to information relating to the allocation of allow-ment and of the Council on the promotion of cogenera-ances and to the results of monitoring of emissions,tion based on useful heat demand in the internal energysubject only to restrictions provided for in Directivemarket will specifically promote combined heat and2003/4/EC of the European Parliament and of thepower technology.Council of 28 January 2003 on public access to environ-mental information ()(14)Member States should submit a report on the implemen-(21)Council Directive 96/61/EC of 24 September 1996tation of this Directive drawn up on the basis of Councilconceming integrated pollution prevention andcontrol (establishes a general framework for pollutionDirective 91/692/EEC of 23 December 1991 standar-dising and rationalising reports on the implementationprevention and control,through which greenhouse gasof certain Directives relating to the environment ()emissions permits may be issued.Directive 96/61ECshould be amended to ensure that emission limit valuesare not set for direct emissions of greenhouse gases froman installation subject to this Directive and that Member(15)The inclusion of additional installations in the Commu-States may choose not to impose requirements relatingnity scheme should be in accordance with the provisionsto energy efficiency in respect of combustion units orlaid down in this Directive,and the coverage of theother units emitting carbon dioxide on the site,withoutCommunity scheme may thereby be extended to emis-prejudice to any other requirements pursuant to Direc-sions of greenhouse gases other than carbon dioxide,tive 96/61/EC.inter alia from aluminium and chemicals activities.(16)This Directive should not prevent any Member Statefrom maintaining or establishing national trading(22)This Directive is compatible with the United Nationsschemes regulating emissions of greenhouse gases fromFramework Convention on Climate Change and theactivities other than those listed in Annex I or includedKyoto Protocol.It should be reviewed in the light ofin the Community scheme,or from installationsdevelopments in that context and to take into accounttemporarily excluded from the Community scheme.experience in its implementation and progress achievedin monitoring of emissions of greenhouse gases.0L41,14.2.2003,p.26.0JL377,31.12.1991,p.48.)0L257,10.10.1996,p.26.