The revised guidelines apply to the next period (2008-2012) of the EU Emissions Trading Scheme (EU ETS) and are designed in part to reduce monitoring and reporting burdens for small biofuel plants and other operations with annual CO2 emissions below 25,000 tonnes.
In an 18 July Decision, which spells out the specific changes to the guidelines in a lengthy technical annex, the Commission promises that operators and national authorities charged with monitoring the trading scheme "should generally be able to meet their obligations [...] at significantly reduced costs".
Despite the promise of reduced costs, monitoring authorities will face more stringent requirements when drawing up so-called emissions monitoring plans for companies operating on their territory. The Commission argues that this will ensure "sound reporting and robust verification results".
Member states' reporting requirements for "transferred and inherent CO2 entering or leaving installations [...] as pure substance or fuel" have also become stricter and are now in line with Kyoto Protocol guidelines.
Emissions reductions through carbon capture and storage are not addressed in the Decision.
The changes follow an extensive review of the EU ETS, which was officially concluded on 30 June. The guidelines are scheduled for further review and possible amendment in two years' time.
The Commission has recently been under fire from a growing number of the new EU member states, who challenge the EU ETS on the grounds that it will harm the development of their economies, and a recent report predicts that carbon prices are likely to collapse again during the next round of trading (EurActiv 22/08/07).
