European Emissions Trading System (EU ETS)

The European Union Emissions Trading System (EU ETS) is a cap-and-trade scheme for the purpose of reducing the greenhouse gas emissions from the EU's power and industrial sectors.  The third phase of the scheme started on 1st January 2013 and includes ceramic installations with a production capacity in excess of 75 tonnes of output per day, or with a total rated thermal input exceeding 20MW.  Installations with reported annual emissions less than 25,000tCO2e were eligible for participation in the UK's Small Emitter and Hospital Opt-out Scheme.  All ceramic sectors and sub-sectors are deemed to be at significant risk of carbon leakage (where production is moved to countries with less stringent policies on carbon emissions) for the period 2015-19.  Retention of carbon leakage status in the fourth phase of the scheme (2021-30) is of business-critical importance.

We think the UK's decision to leave the EU is an opportunity to consider a more holistic approach to reducing carbon emissions whilst maintaining the international competitiveness of industry. Alternatives to emissions trading must be investigated and implemented.

BCC provides comprehensive representation of the whole ceramics industry in negotiations on reducing greenhouse gas emissions at both UK and European levels.  We are an active member of the UK Emissions Trading Group (which informs UK Government on policy development in this area) and Cerame-Unie's Climate and Energy / Climate Group.

BCC provides a central point to co-ordinate all ceramic consultation responses and is a constantly available point of contact for all questions on EU ETS, the UK's small emitter opt-out and alternatives to emissions trading.

For further information, please contact Andrew McDermott.

EU ETS Special Documents

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