Dáil Éireann Debate, Wednesday - 6 February 2013
142. Deputy Eoghan Murphy asked the Minister for the Environment, Community and Local Government his views on whether the current allocation of emissions trading systems credits to the industry is appropriate, particularly in view of the fact that the allocation was based on the industry's high sales levels in previous years, and in view of reports that the cement industry is selling on these surplus credits. [6282/13]
View answerThe third phase of the EU Emissio ns Trading Scheme commenced on 1 January 2013 and will run over an eight year period to the end of 2020. Following a major revision to the trading scheme, approved in 2009, the third phase is significantly different to the first two phases; key differences include –
1. a single EU-wide cap on emissions instead of twenty seven national caps;
2. auctioning, rather than free allocation , is now the default method of allocating allowances; and
3. in specific cases where allowances are still issued free of charge, harmonised allocation rules apply which are based on ambitious EU-wide benchmarks of emissions performance.
Competitiveness concerns are addressed in the case of installations deemed to be exposed to significant risk of carbon leakage. Where i nstallations concerned reach the relevant EU-wide benchmark in principle , they wi ll receive a free allocation of allowances. Installations that fall short of the benchmark will receive a proportionately lower allocation of free allowances compared to their emissions, and therefore must reduce their em issions or buy allowances.
Under Commission Decision 2010/2/EU dated 24 December 2009, the manufacture of cement is a sector deemed to be exposed to a significant risk of carbon leakage. As the third phase of the trading scheme is only operational for a matter of days, it would be premature to draw any conclusions regarding the appropriateness of the agreed EU-wide allocation methodology.
