EEA Technical report No 3/2015 Application of the EU Emissions Trading Directive Analysis of national responses under Article 21 of the EU ETS Directive in 2014 ISSN 1725-2237 EEA Technical report No 3/2015 Application of the EU Emissions Trading Directive Analysis of national responses under Article 21 of the EU ETS Directive in 2014 Cover design: EEA Cover photo: http://pl.wikipedia.org/wiki/Grafika:Belchatow-elektrownia.jpg Layout: EEA/Pia Schmidt 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, 2015 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, 2015 ISBN 978-92-9213-639-0 ISSN 1725-2237 doi:10.2800/814207 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 and tables ............................................................................................................ 5 Acknowledgements .................................................................................................................... 6 This report ................................................................................................................................... 7 Executive summary .................................................................................................................... 8 1 Introduction ......................................................................................................................... 15 1.1 What is greenhouse gas emissions trading? ......................................................................15 1.2 The EU Emissions Trading Directive and related legislation ��������������������������������������������15 1.3 Article 21 reporting on the application of the EU Emissions Trading Directive .............16 1.4 Purpose and structure of this report ..................................................................................16 1.5 National responses in 2014 ................................................................................................17 2 Implementation of the EU ETS Directive in 2013 ............................................................. 18 2.1 Coordination between authorities in the implementation of the EU ETS 18 2.2 Coverage of activities and installations ..............................................................................21 2.2.1 Reported installations ...............................................................................................21 2.2.2 Excluded installations ...............................................................................................22 2.2.3 Changes in allocations ..............................................................................................24 2.3 Application of the Monitoring and Reporting Regulation (MRR) .....................................25 2.3.1 General implementation of the monitoring and reporting processes 25 2.3.2 Application of simplifications allowed within the monitoring and reporting rules ....................................................................................................28 2.3.3 Submission of monitoring methodology improvement reports .........................30 2.3.4 Simplified compliance for installations with low emissions .................................30 2.3.5 Application of sustainability criteria for biofuels and bioliquids 31 2.4 Arrangements for verification..............................................................................................32 2.5 National reporting on issues related to compliance (55) with the EU ETS Directive 36 2.6 The legal nature of emission allowances and fiscal treatment ���������������������������������������37 3 Reported emissions data and analysis ............................................................................. 39 3.1 Reported fuel consumption and emissions data ..............................................................39 3.2 Emissions from waste used as fuel or input material ������������������������������������������������������43 3.3 Implied emission factors ......................................................................................................44 3.4 Transfer of inherent CO2 ................................................................................................... 46 Application of the EU Emissions Trading Directive 3 Contents 4 Outlook ................................................................................................................................. 49 4.1 Data quality ............................................................................................................................49 4.2 Future analysis .......................................................................................................................50 Abbreviations, units and acronyms........................................................................................ 51 Glossary ...................................................................................................................................... 52 References ................................................................................................................................. 55 Appendix 1 Data collection processes and outcomes .......................................................... 57 Appendix 2 Links to country submissions ............................................................................. 60 Appendix 3 Summary of other data submitted ................................................................... 62 A3.1 Administration arrangements ...........................................................................................62 A3.2 Reported activity and emissions data ...............................................................................70 A3.3 Arrangements for verification ............................................................................................72 A3.4 Fees and charges ................................................................................................................72 A3.5 Fraud ....................................................................................................................................73 A3.6 Aviation .................................................................................................................................73 Appendix 4 Further analysis .................................................................................................... 75 A4.1 Installation numbers and installation size classes ..........................................................75 A4.2 Emissions of installations covered by continuous emission measurement ................77 4 Application of the EU Emissions Trading Directive List of figures and tables List of figures and tables Figures Figure ES.1 Consumption (TJ) and emissions (kt CO2) in the EU ETS by fuel type, 2013 .......................................................... 10 Figure ES.2 Fuel consumption (TJ) and emissions (kt CO2) in the EU ETS by country, 2013..................................................... 11 Figure ES.3 Emissions (kt CO2) from waste as a fuel or input material in the EU ETS, 2013 .................................................... 12 Figure 2.1 Number of installations by type, 2013 ....................................................................................................................... 23 Figure 2.2 Number of non-conformities for verifiers and the number resolved, 2013 ......................................................... 33 Figure 2.3 Number of issues identified in verification reports by type, 2013 ......................................................................... 34 Figure 2.4 Number of installations with conservative estimates of emissions, 2013 ............................................................ 35 Figure 2.5 Tax rates (%) and tax types on emission allowances for corporations, 2013 ....................................................... 38 Figure 3.1 Consumption (TJ) and emissions (kt CO2) in the EU ETS by fuel type, 2013 .......................................................... 40 Figure 3.2 Fuel consumption (TJ) and emissions (kt CO2) in the EU ETS by country, 2013..................................................... 41 Figure 3.3 Percentage share of combustion and process emissions per country, 2013 ....................................................... 42 Figure 3.4 Emissions (kt CO2) from waste as a fuel or material input in the EU ETS, 2013 .................................................... 43 Figure 3.5 Implied emission factors (t CO2/TJ), 2013................................................................................................................... 45 Figure 3.6 Amounts of inherent CO2 (kt) transferred and received from EU ETS installations, 2013 ................................... 48 Tables Table 1.1 Completeness of national responses, 2014 .............................................................................................................