Emission Trading Scheme
On 23 January 2008, the Commission adopted a proposal designed to amend the current EU Emission Trading Scheme Directive (Directive 2003/87/EC). The major change, beside the introduction of a Unique European ceiling instead of 27 different MS ceilings and the introduction of a linear emission reduction factor, is that the emission allowances will not anymore be allocated for free. By means of a progressive allowance plan, the allowances will be gradually subjected to auctioning. By 2020 each single allowance will have to be purchased and it has been estimated that the price will be approximately 40 euro/ton CO2.
On 15 July 2015 the Commission presented a new legislative proposal to revise the ETS in line with the 2030 Climate and Energy Policy Framework agreed by the EU Leaders in October 2014. This will shape the future of the ETS system post 2020.