law_mcel_master_working_paper_urgenda_case_and_applicability_of_the_charter_2019.pdf
(485.12 KB, PDF)
… cap decreases each year by a linear reduction factor of 1.74% of the average total quantity of allowances issued annually in 2008-2012,22 cf. Art 9(1) of the EU ETS.23 Within the cap, companies in the concerned industries under the EU ETS receive or buy emission allowances. They can trade these allowances with other companies included in the scheme, cf. Art 12(1) of the EU ETS. Each year, in April, the companies must surrender enough allowances to cover all their emissions of the preceding … Under certain conditions, the Member States may transfer the part of their annual emission allocation that exceeds their greenhouse gas emissions for that year to other Member States, cf. Art 3(5) of the ESD. This means that a Member State can buy allowances to cover up a potential shortage. So, as can be seen, under both the EU ETS and the ESD, there are possibilities that allow for a certain flexibility when industries and Member States, respectively, are to fulfil their obligations under the schemes. For the EU ETS, the flexibility mechanism consists of a cap and trade system, and under the ESD there is a freedom for the Member States to buy, sell and store allowances as they see fit. 2.4 The possibility of further going action, cf. Art 193 TFEU Under Art 193 TFEU, the EU Member States are, for measures adopted under Art 192 TFEU, permitted to maintain or introduce more stringent …