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EU ETS Phase 2

EU ETS Phase 2 or EU Emissions Trading Scheme (EU ETS) II can be referred as the second round of amendment made to one of the largest international emissions trading proposal in the world.

Basic plan of EU ETS Phase1 was to set out total quantity of allowances already allocated in United Kingdom, amount of allowances owed at sector level, level of allowances allocated at installation level and also set out technical aspects including community legislation and policy.

UK National Allocation Plan was one of the basic plans of EU ETS Phase1. UK National Allocation Plan initiated when UK printed and put forwarded a conditional National Allocation Plan (NAP) to the European Commission in May 2004. The plan included details of total amount of allowances to be created in the UK, and also the intensity of allowances to be allocated to installations that are to be covered by the Scheme. This allocation of grant was subject to modification, following the success of work on the Updated Energy Projections (UEP) and Climate Change Agreements (CCA) goals.

Supplementary acquiescence was made to the Commission in the months of June, September, November and December 2004, and also in the months of February and March 2005, this was done to provide updated information. EU ETS Phase1 was completely different from International Climate Change Policy such as the United Nations' Framework Convention on Climate Change (UNFCCC, 1992) or the Kyoto Protocol. EU ETS was already in operational condition before all these schemes were introduced. EU ETS later decided upon accepting the certificates of Kyoto flexible mechanism as an agreement tool.

(c) Stanley Street Labs, 2008