European Union Allowances (EUA) transactions on the European Climate Exchange (ECX)

 

Since 2005, the EU ETS is a market in rapid growth

• - Massive increase in volumes (multiplied by 3.5 between 2005 and 2006)
• - 1.1 billion tonnes CO₂ exchanged in 2006 (market of 18 billion Euros)
• - 5 million tonnes traded per day in average, 60% OTC
• - Phase II (2008-2012) now equal to 95% of volumes

 

National Allocation Plans (NAP)

Under the Emissions Trading Directive which established the ETS, governments are required to draw up national allocation plans (NAPs) for each trading period. NAPs fix the total amount of CO₂ that can be emitted by all the installations in their country covered by the scheme as well as the number of emission allowances allocated to each individual installation.

An installation that emits more CO₂ than it has allowances for would need to buy additional allowances in the market, while one that emits less has the possibility to sell its surplus allowances.

Drawing on the lessons learnt from first phase (2005-2007) national allocation plans, the Commission adopted further guidance for the second trading phase from 2008 to 2012.