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Package 2013-2020


The climate and energy package, a set of legislation to ensure the EU meets its climate and energy targets for the year 2020, has been proposed by the European Commission on 23rd January, 2008. The EU 2020 targets for this package were set by Member States’ leaders in 2007, including:

  • 20% cut in greenhouse gas emissions (from 1990 levels); an option to cut emissions by 30% was declared providing successful international agreements are adopted;
  • 20% of EU energy consumption from renewables;
  • 20% improvement in energy efficiency referring to forecasts for 2020;
  • 10% increase of biofuels share in total transport fuels consumption.

Almost a year later, an agreement between the European Parliament and the EU Council has been reached in December, allowing for adoption of the climate and energy package. The adopted documents were published in Official Journal of the European Union on 5th June, 2009.

Two key elements of the package concerning greenhouse gas emission include:

  • Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community (i.e. EU ETS directive), and
  • Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020 (i.e. non-ETS decision).

The picture below illustrates commitments concerning reduction of greenhouse gas emissions in the EU, and the following table presents targets assigned for Poland, including RES.

Source: presentation by the European Commission


Source: National Centre for Emissions Management (KOBiZE)


The EU Emissions Trading Scheme (EU ETS) is recognized as the key EU policy tool for cutting emissions, since it covers more than 10 000 installations in energy and industrial sectors, responsible for more than 50% of CO2 emission and around 40% of total GHG emission in the EU. The EU ETS is now in its third phase, assigned for 2013-2020 and assumes 21% emission reduction compared to 2005 level. Such a target, regardless the allocation method applied, determines the average number of EU allowances available for the installation covered by the system.

Remaining 60% of GHG emission has been addressed by the second key regulation, non-ETS decision. The Decision assumes 10% cut in GHG emissions as a common target in sectors not in the EU ETS, including transport, agriculture and housing. The national targets differ according to national wealth – from a 20% cut for the richest countries to a maximum 20% increase for the least wealthy. Following the non-ETS Decision Poland is allowed to rise its emission in non-ETS sectors by 14% in 2013-2020.

The European Commission has initially assumed the EU allowances auctioning as a key allocation method. This attitude is to be implemented gradually (member states agreed that more than 90% allowances for industrial sectors will be allocated free), applying different paths and criteria, considering sectors’ specifics. EU ETS Directive identifies three groups of sectors: those exposed to a risk of carbon leakage, electricity producers and all other, including heat generation. Besides, an opportunity to apply derogations for electricity generation in new EU member states has been agreed, allowing for temporary free allocation (instead of 100% auctioning). Electricity producers in these countries might receive EU allowances free, providing they meet criteria defined in the Directive. Allocation rules are illustrated on the picture below.


Source: Zadania wynikające z projektowanych regulacji dotyczących redukcji emisji gazów cieplarnianych w Unii Europejskiej. KASHUE, Warszawa, June, 2009


Free allocation is based on emission intensity factors (benchmarks) defined for individual sectors in the Commission Decision of 27 April 2011 (2011/278/EU) determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of the 2003/87/EC Directive. Sectors exposed to a risk of carbon leakage have been identified in the Commission decisions 2010/2/EU and 2014/746/UE, providing a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage.

Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses consider the transfer of production to other countries, outside the EU, where emission constraints are weaker (finally this could lead to an increase in their total emissions). Such sectors are allowed to receive up to 100% allowances free. Sectors which are not exposed to a risk of carbon leakage may receive from 2013, applying specific factors, up to 80% allowances free, however this quantity is subject to reduction over time, accounting 30% in 2020 and 0% in 2027. Moreover, specific reduction factors could lead to even lower share of free allowances.

The European Commission is responsible for drawing up a list of sectors deemed to be exposed to a risk of carbon leakage every five years starting from 31st Dec., 2009. The list is created through comitology procedure. Two criteria must be meet to be considered on the list:

  • direct and indirect costs induced by the implementation of the directive would increase production cost, calculated as a proportion of the gross value added, by at least 5%; and
  • the sector's trade intensity with non-EU countries (imports and exports) is above 10%.

The list includes also sectors, if the sum of direct and indirect additional costs is at least 30% or the non-EU trade intensity is above 30%.

Allocation rules implemented in IIIrd phase of the EU ETS require installations to buy a significant number of allowances, depending on the sector. Necessary, additional allowances might be purchased on auctions and/or on the market. Installations can also use carbon credits from Kyoto Protocol flexible mechanisms or use allowances saved in 2008-2012.



Tags: aukcja uprawnień okres rozliczeniowy pakiet klimatyczno-energetyczny uprawnienia EUA dyrektywa EU ETS pakiet energetyczno-klimatyczny uprawnienia bezpłatne benchmark carbon leakage ucieczka emisji polityka klimatyczna EU ETS rozporządzenie aukcyjne