Emissions trading

According to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), historical and current discharges of greenhouse gases are projected to have major consequences on our local and global society through climate change.

Current studies predict that if the present trend of greenhouse gas discharges continues, the average global temperature will very likely rise between 1.8C and 4.0C, and the sea level will rise between 18 and 59 centimetres, by 2100.

The consequences of climate change are predicted to include:

Geographic shift of certain species
Extinction of certain species
Changes in rainfall patterns, putting pressure on fresh water supplies for drinking and farming
Extreme weather events giving rise to increases in floods and droughts

Kyoto Protocol

The member states of the EU are signatories to the Kyoto Protocol, which requires reductions in emissions of greenhouse gases by specific amounts over a period from 2008 to 2012 and beyond.

The EU is committed to an average reduction of greenhouse gas emissions by 8% below 1990 levels. The EU Emissions Trading Directive (Directive 2003/87/EC) is being implemented to achieve this.

This Directive establishes an allowance-trading scheme for emissions, to promote reductions of greenhouse gases, in particular carbon dioxide.

The Environmental Protection Agency has been given the responsibility for implementing the Emissions Trading Directive in Ireland by Government under the European Communities (Greenhouse Gas Emissions Trading) Regulations 2004 (S.I. 437 of 2004).

Learn more

Visit the Intergovernmental Panel on Climate Change (IPCC) website

What is the Emissions Trading Scheme?

This is one of the policies being introduced across the EU to tackle emissions of carbon dioxide and other greenhouse gases, in an effort to combat the serious threat of climate change.

The scheme began on 1 January 2005. The first phase runs from 2005-2007 and the second phase will run from 2008-2012 to coincide with the first Kyoto commitment period.

The scheme works on a "Cap and Trade" basis. All EU 25 governments are required to set an emission cap for all installations covered by the scheme.

Each installation is allocated allowances for the particular commitment period. The number of allowances allocated to each installation for any given period is determined on the basis of the National Allocation Plan.

Anyone not covered by the scheme who wishes to hold allowances will be able to open an account on the registry to facilitate this.

Installations not covered

Installations or parts of installations used for R&D and testing of new products and processes are not covered by the Schedule I of S.I. 437 of 2004 Regulation.

The threshold values given below generally refer to production capacities or outputs. Where you carry out several activities falling under the same subheading in the same installation or on the same site, the capacities of these activities are added together.

Thresholds

Activities	Greenhouse Gases
Energy activities: Combustion installations with a rated thermal input exceeding 20 MW (except hazardous or municipal waste installations) Mineral oil refineries Coke ovens	Carbon dioxide
Production and processing of ferrous metals: Metal ore (including sulphide ore) roasting or sintering installations Installations for the production of pig iron or steel (primary or secondary fusion) including continuous casting, with a capacity exceeding 2.5 tonnes per hour	Carbon dioxide
Mineral industry: Installations for the production of cement clinker in rotary kilns with a production capacity exceeding 500 tonnes per day or lime in rotary kilns with a production capacity exceeding 50 tonnes per day or in other furnaces with a production capacity exceeding 50 tonnes per day Installations for the manufacture of glass including glass fibre with a melting capacity exceeding 20 tonnes per day Installations for the manufacture of ceramic products by firing, in particular roofing tiles, bricks, refractory bricks, tiles, stoneware or porcelain, with a production capacity exceeding 75 tonnes per day, and/or with a kiln capacity exceeding 4 m3 and with a setting density per kiln exceeding 300 kg/m3.	Carbon dioxide
Other activities - industrial plants for the production of: Pulp from timber or other fibrous materials Paper and board with a production capacity exceeding 20 tonnes per day	Carbon dioxide

Learn more

Find out more about the Emissions Trading Registry