EEA Report No 6/2016 Application of the EU Emissions Trading Directive Analysis of national responses under Article 21 of the EU ETS Directive in 2015 ISSN 1977-8449 EEA report No 6/2016 Application of the EU Emissions Trading Directive Analysis of national responses under Article 21 of the EU ETS Directive in 2015 Cover design: EEA Cover photos: http://pl.wikipedia.org/wiki/Grafika:Belchatow-elektrownia.jpg Layout: EEA/Rosendahls a/s Legal notice The contents of this publication do not necessarily reflect the official opinions of the European Commission or other institutions of the European Union. Neither the European Environment Agency nor any person or company acting on behalf of the Agency is responsible for the use that may be made of the information contained in this report. Copyright notice © European Environment Agency, 2016 Reproduction is authorised provided the source is acknowledged. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2016 ISBN 978-92-9213-729-8 ISSN 1977-8449 doi:10.2800/679434 European Environment Agency Kongens Nytorv 6 1050 Copenhagen K Denmark Tel.: +45 33 36 71 00 Web: eea.europa.eu Enquiries: eea.europa.eu/enquiries Contents Contents List of figures, tables and boxes ............................................................................................... 5 Acknowledgements .................................................................................................................... 7 This report ................................................................................................................................... 8 Executive summary .................................................................................................................... 9 1 Introduction ......................................................................................................................... 14 1.1 What is greenhouse gas emissions trading? ......................................................................14 1.2 The EU ETS Directive and related policy developments ...................................................14 1.3 Reporting on the application of the EU ETS Directive in accordance with Article 21 ....16 1.4 The purpose and structure of this report ..........................................................................17 1.5 National responses in 2015 .................................................................................................18 2 Implementation of the EU ETS Directive in 2014 ............................................................. 19 2.1 Coordination among competent authorities with regard to the implementation of the EU ETS ..........................................................................................................................19 2.2 Coverage of activities and installations ..............................................................................21 2.3 General implementation of the monitoring and reporting processes ...........................24 2.4 The application of simplifications allowed within the monitoring and reporting rules .......................................................................................................................28 2.5 Arrangements for verification, compliance and penalties ...............................................30 2.6 Changes in allocations ..........................................................................................................32 3 Aviation ................................................................................................................................ 34 3.1 Aviation in the EU ETS ...........................................................................................................34 3.2 Coverage of aircraft operators ............................................................................................35 3.3 Calculation of aviation emissions under the EU ETS .........................................................38 3.4 Monitoring and verification ..................................................................................................38 3.5 Compliance and penalties ....................................................................................................39 4 Reported data and analysis ............................................................................................... 40 4.1 Reported fuel consumption and emissions data ..............................................................40 4.2 Emissions from waste used as fuel or input material ......................................................44 4.3 Emissions from biomass ......................................................................................................44 Application of the EU Emissions Trading Directive 3 Contents 5 Conclusions and outlook .................................................................................................... 48 5.1 Competent authorities .........................................................................................................48 5.2 Coverage of the EU ETS ........................................................................................................48 5.3 Implementation of the Monitoring and Reporting Regulation ........................................48 5.4 Verification and penalties .....................................................................................................49 5.5 Outlook on the future reporting on the application of the EU ETS Directive ................49 Acronyms and country codes .................................................................................................. 50 Glossary ...................................................................................................................................... 53 References ................................................................................................................................. 57 Appendix 1 Data collection processes and outcomes ....................................................... 59 Appendix 2 Links to country submissions .......................................................................... 63 Appendix 3 Summary of how the chapters correspond with different questions in the Article 21 questionnaire ........................................................................ 65 Appendix 4 Other data and information reported ............................................................ 66 4 Application of the EU Emissions Trading Directive List of figures, tables and boxes List of figures, tables and boxes List of figures Figure 1.1 The change in the EU ETS cap between 2005 and 2050 .......................................................................................... 15 Figure 1.2 Outlook on the supply and demand of allowances up to 2030 .............................................................................. 16 Figure 2.1 Information exchange between the NABs and CAs in the EEA-31 in 2014............................................................ 20 Figure 2.2 Number of installations by type in 2014 in the EEA-31 ............................................................................................ 22 Figure 2.3 EU ETS installation numbers for 2013 and 2014 in the EEA-31 .............................................................................. 23 Figure 2.4 Annex I activity permits issued in 2014 in the EEA-31 .............................................................................................. 23 Figure 3.1 EU ETS emissions of aircraft operators in 2014 ........................................................................................................ 36 Figure 3.2 Number of aircraft operators by type in 2014 .......................................................................................................... 37 Figure 4.1 Percentage change (between 2013 and 2014) in consumption (in TJ) and emissions (in kt CO2) in the EU ETS by fuel type ............................................................................................................................................ 41 Figure 4.2 Percentage change (between 2013 and 2014) in fuel consumption (in TJ) and emissions (in kt CO2) in the EU ETS by country .............................................................................................................................................. 42 Figure 4.3 Percentage share of combustion and process emissions per country in 2014 .................................................... 43 Figure 4.4 Emissions (in kt CO2) from waste as a fuel or input material in the EU ETS in 2013 and 2014 ........................... 45 Figure 4.5 Installation emissions from biomass (in kt CO2) in 2013 and 2014 ........................................................................ 46 Figure A4.1 Total amounts of inherent CO2 (in kt) transferred and received from EU ETS installations per country, 2014.......................................................................................................................................................... 81 List of tables Table 1.1 Phases of the EU ETS .................................................................................................................................................... 14 Table 1.2 Completeness (%) of national responses in 2014 and 2015 ................................................................................... 18 Table 2.1 Changes in installation