The Bachelor of Arts in Global Governance 2018/2019

Presentazione sul tema: "The Bachelor of Arts in Global Governance 2018/2019"— Transcript della presentazione:

1 Aldo Ravazzi Douvan aldo.ravazzi@tfambiente.it
The Bachelor of Arts in Global Governance 2018/2019 Plants & Environment - Environmental Global Governance LESSON 1: “United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement” 1st April 2019 Testo di riferimento per gli studenti: Anders Wijkman - Johan Rockström (2012), “Bankrupting Nature: Denying Our Planetary Boundaries - A report to the Club of Rome”, Earthscan-Routledge (available also in Italian: “Natura in bancarotta. Perché rispettare i confini del pianeta. Rapporto al Club di Roma”, Edizioni Ambiente, 2014) Aldo Ravazzi Douvan

2 Kyoto Protocol vs Paris Agreement. Economics and climate policies.
Outline: Climate Change (in the context of the Planetary boundaries, IPCC/UNFCCC, WMO, NASA, NOAA). Kyoto Protocol vs Paris Agreement. Economics and climate policies. Multilateral Agreements: CBD (Biodiversity), CCD (Desertification), Montreal Protocol (Ozone). IPCC Special Report on Global Warming of 1.5°C. NASA: National Aeronautics and Space Administration NOAA: National Oceanic and Atmospheric Administration

3 Definition of Climate Change
Climate change in IPCC (Intergovernmental Panel on Climate Change) usage refers to a change in the state of the climate that can be identified (e.g. using statistical tests) by changes in the mean and/or the variability of its properties, and that persists for an extended period, typically decades or longer. It refers to any change in climate over time, whether due to natural variability or as a result of human activity. This usage differs from that in the UNFCCC (United Nations Framework Convention on Climate Change), where climate change refers to a change of climate that is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and that is in addition to natural climate variability observed over comparable time periods. Source: IPCC 4th Assessment Report - IPCC 5th Assessment Report - Fifth assessment of IPCC says : ‘It is extremely likely that human influence has been the dominant cause of the observed warming since the mid-20th century’.

4 A safe operating space for humanity
9 Planet Boundaries to be kept under control: Climate Change Biosphere integrity (Biodiversity) Stratospheric ozone depletion Atmospheric aerosol loading Ocean acidification Biogeochemical flows (P,N) Land-system change Freshwater use Novel entities We define novel entities as new substances, new forms of existing substances and modified life-forms that have the potential for unwanted geophysical and/or biological effects. Today there are more than 100,000 substances in global commerce. There is also a “chemical intensification” due to the rapidly increasing global production of chemicals, the expanding worldwide distribution as chemical products or in consumer goods, and the extensive global trade in chemical wastes. Some precautionary and preventive actions can be considered. These may include stronger focus on green chemistry (78), finding synergies with risk-reducing interventions in other fields such as occupational health (79), paying more attention to learning from earlier mistakes (80, 81), as well as investing in science to better understand and monitor vital Earth System processes in order to be able to detect disruptive effects from novel entities as early as possible. Source: Rockstroem et al. (2009) and Steffen et al. Planetary Boundaries: Guiding human development on a changing planet, Science, ;

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6 Climate change and CO2 Globally averaged concentration of carbon dioxide (CO2) in the atmosphere reached the symbolic and significant milestone of 400 parts per million for the first time in Ultra High Resolution Carbon Dioxide (CO2) [Video]. “WMO CO2 Mole Fraction Scale” consists of a set of 15 CO2-in-air primary standard calibration gases ranging in CO2 mole fraction (Estimating uncertainty of the WMO mole fraction scale for carbon dioxide in air Cong Long Zhao and Pieter P. Tans) Ppm parti per milione (la concentrazione di una sostanza all’interno di una miscela) e cioè quanta anidride carbonica (CO2) c’è nell’atmosfera. Ma che significa che nell’atmosfera vi sono 400 ppm di CO2? Significa che prendessimo 1 milione di particelle dell’atmosfera, 400 di queste sono formate da anidride carbonica. Ci sono anche altri gas serra pericolosi: il metano (CH4), gli  idrofluorocarburi (Hfc) e il biossido di azoto (NO2) ma la CO2 rimane «il vero elefante» che rimane nell’atmosfera per migliaia di anni e negli oceani ancora più a lungo «Petteri Taalas, Secretary-General of WMO» Source: WMO Greenhouse gas Bulletin No. 14 | 22 November World Meteorological Organization (WMO) and World Data Centre for GHGs (WDCGG).

7 CO2 Emissions: Where do they come from?
• Electricity and Heat Production:The burning of coal, natural gas, and oil for electricity and heat is the largest single source of global greenhouse gas emissions. • Industry: GHG emissions from industry primarily involve fossil fuels burned on site at facilities for energy. This sector also includes emissions from chemical, metallurgical, and mineral transformation processes not associated with energy consumption and emissions from waste management activities. (Note: Emissions from industrial electricity use are excluded and are instead covered in the Electricity and Heat Production sector.) •Agriculture, Forestry, and Other Land Use: GHG emissions from this sector come mostly from agriculture (cultivation of crops and livestock) and deforestation. This estimate does not include the CO2 that ecosystems remove from the atmosphere by sequestering carbon in biomass, dead organic matter, and soils, which offset approximately 20% of emissions from this sector. • Transportation: GHG emissions from this sector primarily involve fossil fuels burned for road, rail, air, and marine transportation. Almost all (95%) of the world's transportation energy comes from petroleum-based fuels, largely gasoline and diesel. • Buildings: GHG emissions from this sector arise from onsite energy generation and burning fuels for heat in buildings or cooking in homes. (Note: Emissions from electricity use in buildings are excluded and are instead covered in the Electricity and Heat Production sector.) • Other Energy: This source of GHG emissions refers to all emissions from the Energy sector which are not directly associated with electricity or heat production, such as fuel extraction, refining, processing, and transportation. Source: IPCC (2014) «Contributors to the IPCC WGIII Fifth Assessment Report» Electricity and Heat Production (25% of 2010 global GHG emissions) Industry (21% of 2010 global GHG emissions) Agriculture, Forestry, and Other Land Use (24% of 2010 global GHG emissions) Transportation (14% of 2010 global GHG emissions) Buildings (6% of 2010 global GHG emissions) Other Energy (10% of 2010 global GHG emissions)

8 Climate change and International action
Temperature anomalies indicate how much warmer or colder it is than normal for a particular place and time. For the GISS analysis, normal always means the average over the 30-year period for that place and time of year. This base period is specific to GISS, not universal. But note that trends do not depend on the choice of the base period: If the absolute temperature at a specific location is 2 degrees higher than a year ago, so is the corresponding temperature anomaly, no matter what base period is selected, since the normal temperature used as base point is the same for both years. Allo sforamento dei record della CO2 in atmosfera si accompagna un 2016 che si classifica come l’anno più caldo di sempre a livello mondiale, da 137 anni fa quando sono iniziate le rilevazioni meteo. Dal 2000, il mondo ha avuto 42 mesi di caldo record e i quattro anni più caldi della storia meteo. Nel contempo, non c'è più stato un mese record i freddo invernale dal dicembre 1916. Incredibile febbraio 2016: il più caldo di sempre, dati termici impressionanti Stiamo parlando di un valore di 1,21°C al di sopra della media del 20° secolo, ovvero della più alta deviazione storica (1634 mesi) per ogni mese dell'anno. Febbraio è riuscito a superare il precedente record (dicembre 2015) di 0,09°C e si tratta del terzo mese consecutivo con un'anomalia termica di oltre 1°C rispetto alla media di riferimento. L'ultimo mese in cui la temperatura globale del pianeta risultò inferiore alla media fu il febbraio del 1985: 31 anni fa. Significa che febbraio 2016 ha segnato il 372° mese di fila in cui la temperatura globale della Terra era di sopra della media. Esaminando il comportamento dei mesi più caldi della storia recente, febbraio 2016 è stato l'anno con la più grande anomalia termica positiva dal 1880. (da far vedere se possibile) (Older Acrtic Sea Ice Disappearing) Source: NASA - National Aeronautics and Space Administration, Goddard Institute for Space Studies -

9 Cumulative global CO2 emissions and temperature
GLOBAL CARBON PROJECT (GCP) was established in 2001 in recognition of the scientific challenge and critical importance of the carbon cycle for Earth's sustainability. GCP The Global Carbon Project is responding to this challenge through a shared partnership between the International Geosphere-Biosphere Programme (IGBP), the International Human Dimensions Programme on Global Environmental Change (IHDP), the World Climate Research Programme (WCRP) andDiversitas. This partnership constitutes the Earth Systems Science Partnership (ESSP). Source: Temperature anomalies indicate how much warmer or colder it is than normal for a particular place and time. For the GISS analysis, normal always means the average over the 30-year period for that place and time of year. This base period is specific to GISS, not universal. But note that trends do not depend on the choice of the base period: If the absolute temperature at a specific location is 2 degrees higher than a year ago, so is the corresponding temperature anomaly, no matter what base period is selected, since the normal temperature used as base point is the same for both years. Allo sforamento dei record della CO2 in atmosfera si accompagna un 2016 che si classifica come l’anno più caldo di sempre a livello mondiale, da 137 anni fa quando sono iniziate le rilevazioni meteo. Dal 2000, il mondo ha avuto 42 mesi di caldo record e i quattro anni più caldi della storia meteo. Nel contempo, non c'è più stato un mese record i freddo invernale dal dicembre 1916. Incredibile febbraio 2016: il più caldo di sempre, dati termici impressionanti Stiamo parlando di un valore di 1,21°C al di sopra della media del 20° secolo, ovvero della più alta deviazione storica (1634 mesi) per ogni mese dell'anno. Febbraio è riuscito a superare il precedente record (dicembre 2015) di 0,09°C e si tratta del terzo mese consecutivo con un'anomalia termica di oltre 1°C rispetto alla media di riferimento. L'ultimo mese in cui la temperatura globale del pianeta risultò inferiore alla media fu il febbraio del 1985: 31 anni fa. Significa che febbraio 2016 ha segnato il 372° mese di fila in cui la temperatura globale della Terra era di sopra della media. Esaminando il comportamento dei mesi più caldi della storia recente, febbraio 2016 è stato l'anno con la più grande anomalia termica positiva dal 1880. (da far vedere se possibile) (Older Acrtic Sea Ice Disappearing) Source: Global Carbon Project 2015

10 Economic and environmental aspects of CC
Economic costs of climate change could be much greater than modelling suggests. (OECD 2015) Sea level rise will bring more frequent and severe flooding to coastal areas Heat stress mortality Source: OECD 2015 Tipping points and extreme events Biodiversity loss The image of « Urban Flood Damages » is the Crue centennale de la Seine (la piena centenaria della Senna) Source: OECD 2015

11 Relation GDP per capita vs GHG emissions per capita:
G20 case G20 is a very diverse case Note this shows GDP per capita against GHG per capita. G20 countries are literally all over the chart. This is just a starting point for our reflections on how to devise scenarios and policy recommendations that are relevant to different country circumstances Source: OECD 2015

12 Kyoto Protocol The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change, which commits its Parties by setting internationally binding emission reduction targets. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. The detailed rules for the implementation of the Protocol were adopted at COP 7 in Marrakesh, Morocco, in 2001, and are referred to as the “Marrakesh Accords.” Its first commitment period started in 2008 and ended in 2012. During the first commitment period, 37 industrialized countries and the European Community committed to reduce GHG emissions to an average of five percent against 1990 levels. During the second commitment period, Parties committed to reduce GHG emissions by at least 18 percent below 1990 levels in the eight-year period from 2013 to 2020; however, the composition of Parties in the second commitment period is different from the first.

13 Kyoto Protocol – Economic instruments
International Emissions Trading (art. 17 & creation of Carbon Market) Clean Development Mechanism (CDM – art. 12 & creation of CERs credits) Joint Implementation (JI – art. 6 & creation of ERUs bonds) CDM: Certified Emission Reduction (CERs) credits = 1tCO2 (responsible subject is DNA_Designed National Authority – In Italy is Dr. Francesco La Camera, DG-SVI) - while the supervision of the project is entrusted to CDM Executive Board (that emits the CERs). (Contries of Annex B, with an emission reduction commitment , can implement an emission-reduction project in developing countries, that don’t have emission-reduction commitments) JI: Emission Reduction Units (ERUs) Allows a country with an emission reduction or limitation commitment under the Kyoto Protocol (Annex B Party) to earn emission reduction units (ERUs) from an emission-reduction or emission removal project in another Annex B Party, each equivalent to one tonne of CO2. The project is entrusted to JI Supervisory Committee (JISC) that emits ERUs.

14 Paris Agreement “This agreement will need to be differentiated, fair, sustainable, dynamic, balanced and legally binding, and will need to ensure that, in 2020, the global temperature does not rise by 2°C – or even 1.5°C – compared to the pre-industrial era because of greenhouse gas emissions”. (Paris 2015 | COP 21 - Speech by Laurent Fabius, French Minister of Foreign Affairs and International Development President of CoP21). Il rapporto dell’ “International Panel on Climate Change” (IPCC), pubblicato nel 2014, indica che a livello globale la temperatura media superficiale aumenterà, entro la fine di questo secolo di 1,5 °C, rispetto al periodo , secondo tutti gli scenari di forzanti antropogenici. A meno che non si attui una forte riduzione delle emissioni entro il prossimo decennio. Si ricorda che l’obiettivo di riduzione europeo, nell’Accordo di Parigi, è pari a – 40% rispetto al 1990 entro il 2030 ed è ripartito in una riduzione del 43% rispetto al 2005 per i settori ETS a livello comunitario e del 30% rispetto al 2005 sugli altri settori (agricoltura, trasporti, civile, residenziale, rifiuti, ecc.) da dividere tra gli Stati Membri.

15 Paris Agreement (1) The Paris Agreement’s central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels (1990) and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. On 5 October 2016, the threshold for entry into force of the Paris Agreement was achieved. The Paris Agreement entered into force on 4 November 2016, thirty days after the date on which at least 55 Parties to the Convention accounting in total for at least an estimated 55% of the total GHGs emissions have deposited their instruments of ratification, acceptance and approval. 185 Parties have ratified of 197 Parties to the Convention (2019 March). (Status of ratification -

16 Paris Agreement (2) Overall goal - Article 2, letter (a): the (< 2ºC/1.5ºC). National Action (NDCs) - Article 4, paragraph 1.: “Parties aim to reach global peaking of GHG emissions as soon as possible…so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of GHGs in the second half of this century”. paragraph 8: “Parties shall provide the information necessary for clarity, transparency and understanding”. Forests and other lands – Article 5 Article 6, paragraph 2: Parties can support the mitigation efforts of other Parties as part of voluntary partnerships. This can include the transfer of mitigation outcomes “that can also be used by another party to fulfil its nationally determined contribution” (e.g. ETS). Article 6, paragraph 4: The Agreement also defines a sustainable development mechanism that allows private and public entities to support mitigation projects that generate transferrable GHG emissions (e.g. CDM).

17 Paris Agreement (3) Adapting to climate change – Article 7
agreement determines that countries should put more emphasis on adaptation planning, and based on this planning Parties should strengthen their cooperation, including through the transfer of funds. Loss and damage - Article 8: the Paris Agreement extends the time-bound Warsaw International Mechanism for Loss and Damage, e.g., early warning systems, emergency preparedness, and slow onset events). Assessment processes – Article 13: provides an “enhanced transparency framework for action and support” that will provide a clear understanding of mitigation action and available climate finance.

18 Paris Agreement (4) Finance, technology and capacity building – Articles 9, 10, 11: to enable and help developing countries to meet their commitments, the Agreement mandates that developed countries provide financial resources (Art. 9), notes the importance of technology transfer (Art. 10), and calls for Parties to cooperate and enhance capacities (Art. 11). Final provisions – Articles 15, 21, 27, 28 Conclusion The Paris Agreement provides a common framework within which individual countries (or alliances of countries) are invited to define NDCs taking into account the overall goal of the Convention and the Agreement as well as their own capacities. The hope is that with increased transparency and an ambitious overall target, countries will step forward with ambitious national plans.

19 Paris Agreement in the international and European context
Paris Agreement on Climate Change, UNFCCC (30 Nov - 11 Dec. 2015) EU Circular Economy Package (2 December 2015) Addis Ababa Agenda on Finance for Development, FfD (13-16 July 2015 ) 2030 Agenda on Sustainable Development and 17 SDGs (Sustainable Development Goals), ONU New York (25 September 2015) «Laudato Si’», Papa Francesco (24 May 2015) Financing for Development

20 Paris Agreement – Economic Instruments
Decision 1/CP.21: Adoption; Intended Nationally Determined Contributions (INDC aforementioned article 4) Decisions to give effect to the Agreement Enhanced action prior to 2020 (Mitigation, Adaptation & Finance) Non-Party stakeholders Administrative and budgetary matters. In particular: 136 paragraph (“Also recognizes the important role of providing incentives for emission reduction activities, including tools such as domestic policies and carbon pricing). L’adozione dell’accordo di Parigi è avvenuta con l’approvazione di un altro documento, proposto dal Presidente della CoP/21 che si chiama “Documento di Decisione”. The Decision 1/CP.21 non sarà sottoposto alla ratifica, accettazione, approvazione o adesione degli Stati, come l’accordo. Ha quindi un diverso peso e ruolo sia formale sia sostanziale ma rimane tuttavia un documento oltre che decisione di adottare l’Accordo, ai sensi della UNFCCC del 1992, anche di decisione sugli organismi e sulle modalità di gestione sia degli impegni di riduzione che di adattamento.

21 Taxation or New Markets
Externalities - Pigouvian tradition – Environmental Tax. Tradable Permit Schemes: markets created from theoretical considerations, usually traced back to Ronald Coase (1960) – a sharp criticism of environmental taxes. Environmental Taxes or Permit Systems to maximise net expected benefits (expected climate benefits minus expected abatement costs) when abatement costs are not known with certainty? Governance issue.

22 Emission Trading and Carbon Taxes
Regional, national, and subnational carbon pricing instruments already implemented or scheduled for implementation: share of global GHG emissions covered. The fossil fuels (coal, oil, and natural gas) we use to generate electricity, power our vehicles, and heat our homes all produce carbon dioxide emissions, which are a leading cause of climate change. Source: World Bank 2015

23 Carbon pricing Worldwide
Source: Carbon Pricing Dashboard - World Bank 2019 – see

24 Carbon Tax vs ETS Carbon tax directly targets the price of carbon (via tax) and the market determines the amount of CO2. ETS directly targets the volume of CO2 emissions and the market determines the price. Both place a «price on carbon», in order to reduce greenhouse gas emissions, and raise considerable amounts of new revenue, whether by taxation or emission quota auctioning. New revenues that could be use to: reduce income taxation, in particular on jobs generated by green economy; promote innovation and diffusion of low-carbon technologies and products; financing sustainable patterns of production and consumption; financing subsidies for energy renewable sources; increase financing of energy efficiency measures; reduce accumulated public debt.

25 International initiatives supporting carbon pricing
Carbon Pricing Leadership Coalition (World Bank) Carbon Pricing Declaration the Heads of States and CEO of large firms - Stoltenberg Carbon Pricing Principles (World Bank e OECD) [Explicit] G7 Carbon Markets Platform (Germany Presidency) [Implicit]

26 International initiatives supporting carbon pricing (2)
Economists Call for a Global Carbon Price in the long period (ETS, CO2 Tax). De Perthuis, Tirole, Heal, Ekins, Sterner, Arrow, Giovannini, Bob Costanza, ...) [Explicit] Low Carbon Society-Research network (LCS-Rnet) Bert Metz, Nishioka, Nakicenovic, Hourcade, Ken Arrow, … Recognition of the social and economic cost The role of Climate Finance

27 Kyoto Protocol vs Paris Agreement
The Kyoto Protocol is an international treaty and legally binds developed country Parties to emission reduction targets (Annex I of the UNFCCC). 192 Parties to the Kyoto Protocol. It commits them to reduce emissions by 5% below the 1990 (first committment ) while in the present second commitment period these nations are required to reduce emissions by 18% ( ). Top-down approach in terms of emission reduction targets. The Kyoto protocol after its second commitment period ( ) ends on 31 January 2020. The Paris Agreement seeks to accelerate and intensify the actions and investment needed for a sustainable low carbon future and does not formulate country specific emissions targets. 197 Parties to the Convention. Thus Kyoto protocol maintains strict difference between the developed and the developing nations. Paris climate change agreement of 2015 attempts to blur this divide between the developed and the developing nations. It has successfully made all the nations to commit on emission reductions domestically (NDCs). Bottom-up approach: the countries that have decided internally (national pledges) how much emissions they aim to reduce. Paris agreement is basically post 2020 agreement. Annex I of the UNFCCC: Australia, Austria, Belarus **, Belgium, Bulgaria, Canada, Croatia **, Cyprus, Czech Republic **, Denmark, Estonia, European Union, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy **, Japan, Latvia, Liechtenstein **, Lithuania, Luxembourg, Malta, Monaco **, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation **, Slovakia **, Slovenia **, Spain, Sweden, Switzerland, Turkey **, Ukraine **, United Kingdom of Great Britain and Northern Ireland, United States of America. ** Party for which there is a specific COP and/or CMP decision (CMP? The Conference of the Parties, the supreme body of the Convention, shall serve as the meeting of the Parties to the Kyoto Protocol. All States that are Parties to the Kyoto Protocol are represented at the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP), while States that are not Parties participate as observers. The CMP oversees the implementation of the Kyoto Protocol and takes decisions to promote its effective implementation).

28 The EU Emissions Trading System (EU ETS)
is a market instrument applied by the EU in an effort to reduce the emissions of greenhouse gases and achieve its climate objective; operates in 31 countries (all 28 EU countries plus Iceland, Liechtenstein and Norway); limits emissions from more than 11,000 heavy energy-using installations (power stations & industrial plants) and airlines operating between these countries; covers around 45% of the EU’s greenhouse gas emissions; works by putting a limit on overall emissions from covered installations which is reduced each year. Within this limit, companies can buy and sell emissions allowances as needed. This «cap-and-trade» approach gives companies the flexibility they need to cut their emissions in most cost-effective way. EU Commission presented in July 2015 a legislative proposal on the revision of EU ETS for its next phase ( ), in line with the EU’s 2030 climate and energy policy framework. The proposal aims to reduce EU ETS emissions by 43% compared to 2005. Le quote sono contabilizzate nel Registro unico dell’UE, una banca dati in formato elettronico che tiene traccia di tutti I passaggi di proprietà delle quote e consente agli operatori di compensare, annualmente, le proprie emissioni restituendo le quote agli Stati Membro. EU ETS: Development in phases : 1st trading period constituted a process of ‘learning by doing.’ EU ETS was successfully established as the world’s biggest carbon market. However, the number of allowances, based on estimated needs, turned out to be excessive; consequently the price of first-period allowances fell to zero in 2007. : 2nd trading period. Iceland, Norway and Liechtenstein joined ( ). The number of allowances was reduced by 6.5% for the period, but the economic downturn depresses emissions, and thus demand, by even more. This led to a surplus of unused allowances and credits which continues to weigh on the carbon price. Aviation was brought into the system ( ). : 3rd trading period. Major reform took effect ( ). The biggest changes have been the introduction of an EU-wide cap on emissions (reduced by 1.74% each year) and a progressive shift towards auctioning of allowances in place of cost-free allocation. Croatia joined the ETS ( ). : 4th trading period. Legislative proposal for the revision of the EU ETS was presented by the European Commission in July 2015.

29 CAP and Trade Mechanism: Origins and evolution of the EU ETS (1)
1) Settore Non-ETS (-13% al 2020 rispetto al 2005: Pacchetto Clima-Energia , Decisione n. 406/2009/CE del Parlamento europeo e del Consiglio del 23 aprile 2009 o “Effort Sharing”) 2) Settore Non-ETS (-33% al 2030: Regolamento Parlamento e Consiglio Ue 525/2013/Ue “Monitoraggio e comunicazione delle emissioni di gas a effetto serra” (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 per il settore non ETS al 2030 per fissare obiettivi più ambiziosi per il periodo ) On 20 July 2016, the European Commission presented a legislative proposal, the "Effort Sharing Regulation", setting out binding annual greenhouse gas emission targets for Member States for the period 2021–2030. 1) Settore-ETS (-21% al 2020 rispetto al 2005: Direttiva 2009/29/CE recepita con D.Lgs. 13 marzo 2013, n, 30) 2) Settore-ETS (-43% al 2030 rispetto al 2005: Quadro per il clima e l’energia al 2030, complessivo per l’Europa) Il framework o Quadro per il clima e… prevede un obiettivo complessivo di abbattimento delle GHGs al 2030 pari al 40% ATTENZIONE (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 che prevede la contabilizzazione delle emissioni di gas ad effetto serra derivanti dall’uso del suolo). PIU’ IN GENERALE PER IL SISTEMA ETS C’E’ UNA PROPOSTA DI DIRETTIVA DEL P. E CONSIGLIO EU DEL 15 LUGLIO 2015”MIGLIORAMENTO DEI COSTI-BENEFICI DELLA RIDUZIONE DELLE EMISSIONI E DEGLI INVESTIMENTI A BASSE EMISSIONI DI CARBONIO”- PROPOSTA DI MODIFICA DELLA DIRETTIVA 2003/87/Ce O PRIMA DIRETTIVA ETS. EU ETS History The scheme ran from 2005 until 2012 in two phases: Phase 1 (1st January 2005 to 31st December 2007) Phase 2 (1st January 2008 to 31st December 2012)   Phase III (1 January 2013 to 31 December 2020) The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UK’s scheme to lower compliance costs for small emitters and hospitals. The EU cap will reduce the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards. Quando si partì nel 1997 coinvolgeva ¼ delle emissioni. Oggi siamo di fronte agli Intended Nationally Determined Contributions (“contributi programmati e definiti a livello nazionale“) elemento centrale della COP 20 tenuta a Lima un anno fa. The COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements. What is the COP? (Conference of the Parties) The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC Parties (Conferences of the Parties) (COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Contents   [hide]  1 1995: COP 1, The Berlin Mandate 3 1997: COP 3, The Kyoto Protocol on Climate Change 2 1996: COP 2, Geneva, Switzerland 4 1998: COP 4, Buenos Aires, Argentina 5 1999: COP 5, Bonn, Germany 6 2000: COP 6, The Hague, Netherlands 8 2001: COP 7, Marrakech, Morocco 7 2001: COP 6, Bonn, Germany 9 2002: COP 8, New Delhi, India 10 2003: COP 9, Milan, Italy 11 2004: COP 10, Buenos Aires, Argentina 13 2006: COP 12/CMP 2, Nairobi, Kenya 12 2005: COP 11/CMP 1, Montreal, Canada 14 2007: COP 13/CMP 3, Bali, Indonesia 15 2008: COP 14/CMP 4, Poznań, Poland 16 2009: COP 15/CMP 5, Copenhagen, Denmark 18 2011: COP 17/CMP 7, Durban, South Africa 17 2010: COP 16/CMP 6, Cancún, Mexico 19 2012: COP 18/CMP 8, Doha, Qatar 20 2013: COP 19/CMP 9, Warsaw, Poland 21 2014: COP 20/CMP 10, Lima, Peru 22 2015: COP 21/CMP 11, Paris, France (*) (*) : Aviation was brought into the system. A separate cap applies to the aviation sector: for the whole period, GHG emissions have to be 5% (vs. -21%/ -43%) below the average annual level of emissions in the year (vs. 2005).

30 CAP and Trade Mechanism: Origins and evolution of the EU ETS (2)
Targets 2020 & 2030 NON-ETS sectors ETS sectors [National Commitment] [National Commitment] [EU Commitment] [EU Commitment] Brussels, COM(2016) 482 final, amending REGULATION (EU) No 525/2013 on a mechanism for monitoring and reporting GHG emissions Directive 2009/29/EC amending Directive 2003/87/EC so as to improve and extend the GHG emission allowance trading scheme of the Community Da non dimenticare la 2050 long-term strategy 28 November, O Emissions by 2050. 1) Settore Non-ETS (-13% al 2020 rispetto al 2005: Pacchetto Clima-Energia , Decisione n. 406/2009/CE del Parlamento europeo e del Consiglio del 23 aprile 2009 o “Effort Sharing”) 2) Settore Non-ETS (-33% al 2030: Regolamento Parlamento e Consiglio Ue 525/2013/Ue “Monitoraggio e comunicazione delle emissioni di gas a effetto serra” (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 per il settore non ETS al 2030 per fissare obiettivi più ambiziosi per il periodo ) On 20 July 2016, the European Commission presented a legislative proposal, the "Effort Sharing Regulation", setting out binding annual greenhouse gas emission targets for Member States for the period 2021–2030. 1) Settore-ETS (-21% al 2020 rispetto al 2005: Direttiva 2009/29/CE recepita con D.Lgs. 13 marzo 2013, n, 30) 2) Settore-ETS (-43% al 2030 rispetto al 2005: Quadro per il clima e l’energia al 2030, complessivo per l’Europa) Il framework o Quadro per il clima e… prevede un obiettivo complessivo di abbattimento delle GHGs al 2030 pari al 40% ATTENZIONE (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 che prevede la contabilizzazione delle emissioni di gas ad effetto serra derivanti dall’uso del suolo). PIU’ IN GENERALE PER IL SISTEMA ETS C’E’ UNA PROPOSTA DI DIRETTIVA DEL P. E CONSIGLIO EU DEL 15 LUGLIO 2015”MIGLIORAMENTO DEI COSTI-BENEFICI DELLA RIDUZIONE DELLE EMISSIONI E DEGLI INVESTIMENTI A BASSE EMISSIONI DI CARBONIO”- PROPOSTA DI MODIFICA DELLA DIRETTIVA 2003/87/Ce O PRIMA DIRETTIVA ETS. EU ETS History The scheme ran from 2005 until 2012 in two phases: Phase 1 (1st January 2005 to 31st December 2007) Phase 2 (1st January 2008 to 31st December 2012)   Phase III (1 January 2013 to 31 December 2020) The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UK’s scheme to lower compliance costs for small emitters and hospitals. The EU cap will reduce the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards. Quando si partì nel 1997 coinvolgeva ¼ delle emissioni. Oggi siamo di fronte agli Intended Nationally Determined Contributions (“contributi programmati e definiti a livello nazionale“) elemento centrale della COP 20 tenuta a Lima un anno fa. What is the COP? (Conference of the Parties) The COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements. The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC Parties (Conferences of the Parties) (COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Contents 1 1995: COP 1, The Berlin Mandate   [hide]  2 1996: COP 2, Geneva, Switzerland 3 1997: COP 3, The Kyoto Protocol on Climate Change 4 1998: COP 4, Buenos Aires, Argentina 6 2000: COP 6, The Hague, Netherlands 5 1999: COP 5, Bonn, Germany 7 2001: COP 6, Bonn, Germany 8 2001: COP 7, Marrakech, Morocco 9 2002: COP 8, New Delhi, India 11 2004: COP 10, Buenos Aires, Argentina 10 2003: COP 9, Milan, Italy 12 2005: COP 11/CMP 1, Montreal, Canada 13 2006: COP 12/CMP 2, Nairobi, Kenya 14 2007: COP 13/CMP 3, Bali, Indonesia 16 2009: COP 15/CMP 5, Copenhagen, Denmark 15 2008: COP 14/CMP 4, Poznań, Poland 17 2010: COP 16/CMP 6, Cancún, Mexico 18 2011: COP 17/CMP 7, Durban, South Africa 19 2012: COP 18/CMP 8, Doha, Qatar 20 2013: COP 19/CMP 9, Warsaw, Poland 21 2014: COP 20/CMP 10, Lima, Peru 22 2015: COP 21/CMP 11, Paris, France Decision n. 406/2009/EC or Effort Sharing 2030 Climate and Energy Framework

31 Key features of phase 3 (2013-2020)
The EU ETS is now in its third phase – significantly different from phases 1 and 2. The main changes are: A single EU-wide cap on emissions applies in place of the previous system of national caps. Auctioning is the default method for allocating allowances (instead of free allocation), and harmonised allocation rules apply to the allowances still given away for free. More sectors and gases included. 300 million allowances set aside in the New Entrants Reserve to fund the deployment of innovative renewable energy technologies and CCS (carbon capture and storage) through the NER 300 programme. 1) Settore Non-ETS (-13% al 2020 rispetto al 2005: Pacchetto Clima-Energia , Decisione n. 406/2009/CE del Parlamento europeo e del Consiglio del 23 aprile 2009 o “Effort Sharing”) 2) Settore Non-ETS (-33% al 2030: Regolamento Parlamento e Consiglio Ue 525/2013/Ue “Monitoraggio e comunicazione delle emissioni di gas a effetto serra” (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 per il settore non ETS al 2030 per fissare obiettivi più ambiziosi per il periodo ) On 20 July 2016, the European Commission presented a legislative proposal, the "Effort Sharing Regulation", setting out binding annual greenhouse gas emission targets for Member States for the period 2021–2030. 1) Settore-ETS (-21% al 2020 rispetto al 2005: Direttiva 2009/29/CE recepita con D.Lgs. 13 marzo 2013, n, 30) 2) Settore-ETS (-43% al 2030 rispetto al 2005: Quadro per il clima e l’energia al 2030, complessivo per l’Europa) Il framework o Quadro per il clima e… prevede un obiettivo complessivo di abbattimento delle GHGs al 2030 pari al 40% ATTENZIONE (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 che prevede la contabilizzazione delle emissioni di gas ad effetto serra derivanti dall’uso del suolo). PIU’ IN GENERALE PER IL SISTEMA ETS C’E’ UNA PROPOSTA DI DIRETTIVA DEL P. E CONSIGLIO EU DEL 15 LUGLIO 2015”MIGLIORAMENTO DEI COSTI-BENEFICI DELLA RIDUZIONE DELLE EMISSIONI E DEGLI INVESTIMENTI A BASSE EMISSIONI DI CARBONIO”- PROPOSTA DI MODIFICA DELLA DIRETTIVA 2003/87/Ce O PRIMA DIRETTIVA ETS. EU ETS History The scheme ran from 2005 until 2012 in two phases: Phase 1 (1st January 2005 to 31st December 2007) Phase 2 (1st January 2008 to 31st December 2012)   Phase III (1 January 2013 to 31 December 2020) The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UK’s scheme to lower compliance costs for small emitters and hospitals. The EU cap will reduce the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards. Quando si partì nel 1997 coinvolgeva ¼ delle emissioni. Oggi siamo di fronte agli Intended Nationally Determined Contributions (“contributi programmati e definiti a livello nazionale“) elemento centrale della COP 20 tenuta a Lima un anno fa. The COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements. What is the COP? (Conference of the Parties) The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC Parties (Conferences of the Parties) (COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Contents   [hide]  1 1995: COP 1, The Berlin Mandate 3 1997: COP 3, The Kyoto Protocol on Climate Change 2 1996: COP 2, Geneva, Switzerland 4 1998: COP 4, Buenos Aires, Argentina 5 1999: COP 5, Bonn, Germany 6 2000: COP 6, The Hague, Netherlands 8 2001: COP 7, Marrakech, Morocco 7 2001: COP 6, Bonn, Germany 9 2002: COP 8, New Delhi, India 10 2003: COP 9, Milan, Italy 11 2004: COP 10, Buenos Aires, Argentina 13 2006: COP 12/CMP 2, Nairobi, Kenya 12 2005: COP 11/CMP 1, Montreal, Canada 14 2007: COP 13/CMP 3, Bali, Indonesia 15 2008: COP 14/CMP 4, Poznań, Poland 16 2009: COP 15/CMP 5, Copenhagen, Denmark 18 2011: COP 17/CMP 7, Durban, South Africa 17 2010: COP 16/CMP 6, Cancún, Mexico 19 2012: COP 18/CMP 8, Doha, Qatar 20 2013: COP 19/CMP 9, Warsaw, Poland 21 2014: COP 20/CMP 10, Lima, Peru 22 2015: COP 21/CMP 11, Paris, France

32 Sectors and gases covered (2013-2020) (1)
The system focuses on emissions that can be measured, reported and verified with a high level of accuracy: carbon dioxide (CO2) from: a) power and heat generation; b) energy-intensive industry sectors including oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals; c) commercial aviation; nitrous oxide (N2O) from production of nitric, adipic and glyoxylic acids and glyoxal; perfluorocarbons (PFCs) from aluminium production; 1) Settore Non-ETS (-13% al 2020 rispetto al 2005: Pacchetto Clima-Energia , Decisione n. 406/2009/CE del Parlamento europeo e del Consiglio del 23 aprile 2009 o “Effort Sharing”) 2) Settore Non-ETS (-33% al 2030: Regolamento Parlamento e Consiglio Ue 525/2013/Ue “Monitoraggio e comunicazione delle emissioni di gas a effetto serra” (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 per il settore non ETS al 2030 per fissare obiettivi più ambiziosi per il periodo ) On 20 July 2016, the European Commission presented a legislative proposal, the "Effort Sharing Regulation", setting out binding annual greenhouse gas emission targets for Member States for the period 2021–2030. 1) Settore-ETS (-21% al 2020 rispetto al 2005: Direttiva 2009/29/CE recepita con D.Lgs. 13 marzo 2013, n, 30) 2) Settore-ETS (-43% al 2030 rispetto al 2005: Quadro per il clima e l’energia al 2030, complessivo per l’Europa) Il framework o Quadro per il clima e… prevede un obiettivo complessivo di abbattimento delle GHGs al 2030 pari al 40% ATTENZIONE (Revisone! c’è una Proposta di regolamento del Parlamento e del Consiglio europeo del 20 luglio 2016 che prevede la contabilizzazione delle emissioni di gas ad effetto serra derivanti dall’uso del suolo). PIU’ IN GENERALE PER IL SISTEMA ETS C’E’ UNA PROPOSTA DI DIRETTIVA DEL P. E CONSIGLIO EU DEL 15 LUGLIO 2015”MIGLIORAMENTO DEI COSTI-BENEFICI DELLA RIDUZIONE DELLE EMISSIONI E DEGLI INVESTIMENTI A BASSE EMISSIONI DI CARBONIO”- PROPOSTA DI MODIFICA DELLA DIRETTIVA 2003/87/Ce O PRIMA DIRETTIVA ETS. EU ETS History The scheme ran from 2005 until 2012 in two phases: Phase 1 (1st January 2005 to 31st December 2007) Phase 2 (1st January 2008 to 31st December 2012)   Phase III (1 January 2013 to 31 December 2020) The current phase of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change including: an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances, as well as the UK’s scheme to lower compliance costs for small emitters and hospitals. The EU cap will reduce the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by The trajectory will be calculated from a departure point of the mid-point of Phase II and will describe a declining cap from 2013 onwards. Quando si partì nel 1997 coinvolgeva ¼ delle emissioni. Oggi siamo di fronte agli Intended Nationally Determined Contributions (“contributi programmati e definiti a livello nazionale“) elemento centrale della COP 20 tenuta a Lima un anno fa. The COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at the COP, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements. What is the COP? (Conference of the Parties) The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC Parties (Conferences of the Parties) (COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Contents   [hide]  1 1995: COP 1, The Berlin Mandate 3 1997: COP 3, The Kyoto Protocol on Climate Change 2 1996: COP 2, Geneva, Switzerland 4 1998: COP 4, Buenos Aires, Argentina 5 1999: COP 5, Bonn, Germany 6 2000: COP 6, The Hague, Netherlands 8 2001: COP 7, Marrakech, Morocco 7 2001: COP 6, Bonn, Germany 9 2002: COP 8, New Delhi, India 10 2003: COP 9, Milan, Italy 11 2004: COP 10, Buenos Aires, Argentina 13 2006: COP 12/CMP 2, Nairobi, Kenya 12 2005: COP 11/CMP 1, Montreal, Canada 14 2007: COP 13/CMP 3, Bali, Indonesia 15 2008: COP 14/CMP 4, Poznań, Poland 16 2009: COP 15/CMP 5, Copenhagen, Denmark 18 2011: COP 17/CMP 7, Durban, South Africa 17 2010: COP 16/CMP 6, Cancún, Mexico 19 2012: COP 18/CMP 8, Doha, Qatar 20 2013: COP 19/CMP 9, Warsaw, Poland 21 2014: COP 20/CMP 10, Lima, Peru 22 2015: COP 21/CMP 11, Paris, France

33 Sectors and gases covered (2013-2020) (2)
Energy: 1) combustion of fuels in installations with a total rated thermal input exceeding 20 MW (except in installations for the incineration of hazardous or municipal waste); 2) refining of mineral oil; 3) production of coke. Metal ore: 1) pig iron or steel; 2) ferrous metals; 3) aluminium; 4) non-ferrous metals. Ore products: 1) cement clinker, lime; 2) glass; 3) ceramic products; 4) mineral wool; 5) gypsum and plaster boards. Paper, cardboard and pulp from timber or other fibrous materials. Chemicals: 1) carbon black; 2) acids; 3) ammonia; 4) hydrogen; 5) soda ash and sodium bicarbonate. Capture of greenhouse gases from installations covered by the Directive 2009/29/EC for the purpose of transport and geological storage (CCS) Aviation: Flights which depart from or arrive in an aerodrome situated in the territory of a Member State to which the Treaty applies. Le quote sono contabilizzate nel Registro unico dell’UE, una banca dati in formato elettronico che tiene traccia di tutti I passaggi di proprietà delle quote e consente agli operatori di compensare, annualmente, le proprie emissioni restituendo le quote agli Stati Membro. EU ETS: Development in phases : 1st trading period constituted a process of ‘learning by doing.’ EU ETS was successfully established as the world’s biggest carbon market. However, the number of allowances, based on estimated needs, turned out to be excessive; consequently the price of first-period allowances fell to zero in 2007. : 2nd trading period. Iceland, Norway and Liechtenstein joined ( ). The number of allowances was reduced by 6.5% for the period, but the economic downturn depresses emissions, and thus demand, by even more. This led to a surplus of unused allowances and credits which continues to weigh on the carbon price. Aviation was brought into the system ( ). : 3rd trading period. Major reform took effect ( ). The biggest changes have been the introduction of an EU-wide cap on emissions (reduced by 1.74% each year) and a progressive shift towards auctioning of allowances in place of cost-free allocation. Croatia joined the ETS ( ). : 4th trading period. Legislative proposal for the revision of the EU ETS was presented by the European Commission in July 2015. Source: Directive 2009/29/EC of the EU Parliament and of the Council of 23  April 2009 – ANNEX I “Categories of Activities to which this Directive applies”

34 How does the EU ETS work? Emissions trading is the trade in emission allowances, which grants the right to emit a specific quantity of CO2 [or CO2 eq.]. The EU ETS operates on the “cap and trade” principle. Le quote sono contabilizzate nel Registro unico dell’UE, una banca dati in formato elettronico che tiene traccia di tutti i passaggi di proprietà delle quote e consente agli operatori di compensare, annualmente, le proprie emissioni restituendo le quote agli Stati Membri. EU ETS: Development in phases : 1st trading period constituted a process of ‘learning by doing.’ EU ETS was successfully established as the world’s biggest carbon market. However, the number of allowances, based on estimated needs, turned out to be excessive; consequently the price of first-period allowances fell to zero in 2007. : 2nd trading period. Iceland, Norway and Liechtenstein joined ( ). The number of allowances was reduced by 6.5% for the period, but the economic downturn depresses emissions, and thus demand, by even more. This led to a surplus of unused allowances and credits which continues to weigh on the carbon price. Aviation was brought into the system ( ). : 3rd trading period. Major reform took effect ( ). The biggest changes have been the introduction of an EU-wide cap on emissions (reduced by 1.74% each year) and a progressive shift towards auctioning of allowances in place of cost-free allocation. Croatia joined the ETS ( ). : 4th trading period. Legislative proposal for the revision of the EU ETS was presented by the European Commission in July 2015.

35 The CAP for 2013 and next years
Annual Cap (Excluding Aviation) 2013 2014 2015 2016 2017 2018 2019 2020 NIMs (National Implementing Measures) Decision 2010/634/EU the EU Commission fixed: the CAP for 2013 = 2,084 billion of Emission Allowance; for the period reduced by -1.74% per year; for the period reduced by -2.2% per year. Le quote sono contabilizzate nel Registro unico dell’UE, una banca dati in formato elettronico che tiene traccia di tutti I passaggi di proprietà delle quote e consente agli operatori di compensare, annualmente, le proprie emissioni restituendo le quote agli Stati Membro. EU ETS: Development in phases : 1st trading period constituted a process of ‘learning by doing.’ EU ETS was successfully established as the world’s biggest carbon market. However, the number of allowances, based on estimated needs, turned out to be excessive; consequently the price of first-period allowances fell to zero in 2007. : 2nd trading period. Iceland, Norway and Liechtenstein joined ( ). The number of allowances was reduced by 6.5% for the period, but the economic downturn depresses emissions, and thus demand, by even more. This led to a surplus of unused allowances and credits which continues to weigh on the carbon price. Aviation was brought into the system ( ). : 3rd trading period. Major reform took effect ( ). The biggest changes have been the introduction of an EU-wide cap on emissions (reduced by 1.74% each year) and a progressive shift towards auctioning of allowances in place of cost-free allocation. Croatia joined the ETS ( ). : 4th trading period. Legislative proposal for the revision of the EU ETS was presented by the European Commission in July 2015. Source: European Commission, ANNEX Report on the functioning of the European carbon market Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Climate action progress report, COM(2015) 576 final ANNEX 1, Brussels,

36 What are the EUA & EUA A and where are they exchanged?
EUA: European Union Allowances (= 1 ton CO2 eq.) EUA A: European Union Allowances Aviation (= 1 ton CO2 eq.) There are 3 auction platforms in place: 1) The European Energy Exchange (EEX) in Leipzig is the common platform for the large majority of countries participating in the EU ETS. 2) EEX acts as Germany’s auction platform. 3) ICE Futures Europe (ICE) in London, which acts as the United Kingdom’s platform. Le quote sono contabilizzate nel Registro unico dell’UE, una banca dati in formato elettronico che tiene traccia di tutti I passaggi di proprietà delle quote e consente agli operatori di compensare, annualmente, le proprie emissioni restituendo le quote agli Stati Membro. EU ETS: Development in phases : 1st trading period constituted a process of ‘learning by doing.’ EU ETS was successfully established as the world’s biggest carbon market. However, the number of allowances, based on estimated needs, turned out to be excessive; consequently the price of first-period allowances fell to zero in 2007. : 2nd trading period. Iceland, Norway and Liechtenstein joined ( ). The number of allowances was reduced by 6.5% for the period, but the economic downturn depresses emissions, and thus demand, by even more. This led to a surplus of unused allowances and credits which continues to weigh on the carbon price. Aviation was brought into the system ( ). : 3rd trading period. Major reform took effect ( ). The biggest changes have been the introduction of an EU-wide cap on emissions (reduced by 1.74% each year) and a progressive shift towards auctioning of allowances in place of cost-free allocation. Croatia joined the ETS ( ). : 4th trading period. Legislative proposal for the revision of the EU ETS was presented by the European Commission in July 2015.