Introduction

Emissions trading is emerging as a key policy instrument in the drive to reduce greenhouse gas emissions. Emissions trading gives companies the flexibility to meet emissions targets according to their own strategy. By allowing participants to trade in allowances, overall emissions reductions are achieved in the most cost effective way possible.

The EU Greenhouse Gas Emissions Trading Scheme covers emissions of greenhouse gases from a number of industries, which are specified in the EU Emissions Trading Directive. Initially, the scheme will cover only emissions of carbon dioxide. The scheme started on 1 January 2005. The scheme required all installations within the scope of the scheme to have a permit by 31 March 2004. In order to receive a permit, operators had to submit their application by 31 January 2004.

• What activities are covered?
  Activities that are covered by the EU Emissions Trading Directive in Phase I.
  
  
• How does the scheme work?
  How the EU Emissions Trading Scheme works and implementation dates.
  
  
• What emission limit have installations received?
  How emission limits were set for the EU Emissions Trading Scheme.
  
  
• How do operators get a permit?
  How operators should apply to get a permit for the EU Emissions Trading Scheme. Application form and guidance available here.
  
  
• Monitoring & Reporting requirements and guidance
  Summary of the monitoring and reporting requirements for the EU ETS.

Further information

Should you have further questions about the EU Emissions Trading scheme and the National Allocation Plan (NAP) please contact our helpdesk at: emission.trading@sepa.org.uk

Regular updates on EU ETS developments will continue to be produced and posted on the Defra website, "What's new" page. Defra documents on EU ETS guidance include:

• Defra's operators Guide to the EU Emissions Trading Scheme
• Frequently Asked Questions & Answers
• ETS Forms