Increasing the Ambition of EU Emissions Trading

Publication - June 23, 2006
An Assessment of the Draft Second Allocation Plans and Verified Emission Reports of Germany, the United Kingdom and the Netherlands

Germany's most polluting coal fired power station, RWE brown coal power plant.

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Executive summary: Executive Summary

The draft Second National Allocation Plans (NAPs) of Germany, the United Kingdom, and the Netherlands have been assessed based on the questions of whether these NAPs ensure meeting the respective national commitments under the Kyoto Protocol in the short term and whether they stimulate the development and the diffusion of low carbon intensive technologies to meet larger emission cuts in the longer term.

In short, these draft NAPs place a disproportionate burden for emissions reductions on the non-ETS sectors in terms of meeting the countries respective commitments under EU Burden Sharing agreement to meet the targets in the Kyoto Protocol. This effectively lets the industries covered ‘off the hook’, and places an extra burden on the transport, commercial, household, and other sectors not covered by the ETS. While each of the countries in question is likely to meet its Kyoto targets, they are not effectively using the system to drive emissions reductions in the sectors covered by the ETS in the short term. Likewise, the three MS are not using the system effectively to guide long-term investments in clean technologies required to meet the rigorous climate tar-gets in the medium term (2020) or longer term (2050). For the EU long-term emission reductions of 80 % are considered necessary to keep global mean temperature rise below 2° C above pre-industrial levels.

Num. pages: 71 pages