European Union (EU) is a front runner with the Emission Trading System (ETS—a "cap and trade" system for CO2 emissions) implemented since 2006. Many measures are taken based on this system. In March 2007, the Member States agreed to a 20% reduction in CO2 emissions by 2020, together with a 20% reduction in energy consumption and a 20% share of renewable energies in the total consumption, all compared with the actual levels of 2005.
In early 2008, the ETS was reformed. It now allows full emission certificates banking from Phase II (2008-2012) to Phase III (2013-2020). Also, during the first half of 2008, all EU Member States agreed on more restrictive Phase II (2008- 2012) National Allocation Plans on CO2 emissions that totals 2,082 million tons of CO2 per year compared to 2,298 Mt/year during Phase I (2005 to 2007). Central to the strategy is a strengthening and expansion from 2013 of the Emissions Trading System. The cap on emission allowances for the sectors covered by the system – power generation, energy-intensive manufacturing industry and, from 2011 or 2012, aviation – will be cut by 1.74% annually until at least 2028.
Large investments in energy infrastructures are needed In order to comply with the EU energy demand growth and replace aging infrastructure.
EU has proposed a "Climate Package" in January 2008 http://ec.europa.eu/environment/climat/climate_action.htm. The text adopted is located at http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=20081217&secondRef=TOC&language=EN. This "Climate Package" includes plans during phase III (2013-2020) that will extend coverage from CO2 to other greenhouse effect gases. It will impose significant reductions of overall emissions, including from sectors that are currently out of the ETS scope such as transport, housing, agriculture and waste. Also emphasizes the renewable energy contribution to the total energy supply. This package will also further reform ETS, by imposing the following changes:[1]
Research by Kevine Lidoro
