First published in the Winter Issue of BLG Aerospace News
In response to the undertakings given in the Kyoto Protocol, the EU Emissions Trading Scheme ("ETS") is being introduced across Europe to tackle emissions of greenhouse gases.
The ETS will commence on 1 January 2005. The first phase of the ETS runs from 2005-2007 and the second phase will run from 2008-2012. Further 5-year periods are expected subsequently. The ETS only applies for the moment to industries that encompass energy activities, the production and processing of ferrous metals, processing and manufacturing activities involving minerals, and pulp paper and board manufacture.
Each installation covered by the scheme must hold a greenhouse gas emissions trading permit (in effect, a licence to operate and to emit carbon dioxide) from 1 January 2005. Each permitted installation will receive an allocation of carbon dioxide emission allowances. The number of allowances allocated to each installation will be based on the
