1.4 European Union policy and legislation

A summary and update of the European Parliament’s action on climate change can be found here [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] .

Reducing greenhouse gases is a key component of European action. The EU has a monitoring mechanism in place, across member countries, to keep regular track of emissions and the absorption of these gases. With a view to gradually reducing emissions, the EU has also established a system based on market rules, a greenhouse gas emissions trading scheme and specific rules on fluorinated greenhouse gases. For more on this click here.

The EU Emissions Trading Scheme (EU ETS) is based on Directive 2003/87/EC, which entered into force on 25 October 2003. It currently applies to energy intensive businesses such as mineral industries and pulp and paper industries. Companies are allocated allowances and must ensure that at the end of the year they have enough allowances to account for their emissions; they can then trade allowances, purchasing additional ones to cover extra emissions or selling any surplus. Read more about the scheme here.

Details of the European Commission’s programme on climate change can be found here.