9/11/2005
EU ETS Review
CIAA Position Paper on the
Review of the EU Emissions Trading Scheme


The European Commission is currently reviewing the implementation of the EU Emissions Trading Scheme (EU ETS) and will submit, by the end of June 2006, a report considering, inter alia, amendments of the scope of the Directive (Annex 1) and the need for further harmonisation of allocation methodologies.

Based on the EU food and drink industry’s experience with the first EU ETS phase, CIAA considers it vital that during the review of the EU ETS several shortcomings of the first trading period are addressed to ensure that future emission reductions are achieved in the most cost-effective manner.

CIAA priorities for the EU ETS review:
•  CIAA strongly calls for a uniform implementation of the scope of the ETS Directive (Annex I). Above all, this requires a harmonised definition of “combustion installation” across the EU.
•  CIAA strongly supports the exclusion of smaller installations (below 25 kt CO2/year) from the EU ETS. Given their low level of emissions, compliance with monitoring, reporting and verification places disproportionate burdens on these sites.
•  CIAA is supportive of moving towards a further harmonisation of allocation methodologies including rules on new entrants, site closure and allowance transfer, share of free allowances, base years and general allocation method.
•  CIAA opposes an extension of the EU ETS to additional activities, installations or gases from the EU food and drink industry.
•  CIAA calls for long-term allocation certainty and for a proportionate sharing of emission reduction burdens among EU industry sectors as well as among major industrialised and emerging economies world-wide.

Download the full position in English