EU ETS: legislation and research publications
Source: gov.uk (2025-01-22)

Use reference materials and access current regulations for the EU Emissions Trading System.

Legislation

Current UK regulations

The Greenhouse Gas Emissions Trading Scheme Regulations 2012 (http://www.legislation.gov.uk/uksi/2012/3038/contents/made) can be viewed on the Parliament website.

Previous legislation (http://webarchive.nationalarchives.gov.uk/20121025080026/http://www.decc.gov.uk/en/content/cms/emissions/eu_ets/publications/publications.aspx) is available on the National Archives.

EU legislation

All the EU legislation and guidance listed below is available on the European commission’s website (http://ec.europa.eu/clima/policies/ets/documentation_en.htm):
- unofficial consolidated EU Emissions Trading Directive 2003/87/EC (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2003L0087:20090625:EN:PDF)
- Directive 2009/29/EC (Phase III) (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0063:0087:EN:PDF) The final text for this Directive was agreed on 23 April 2009, amending Directive 2003/87/EC (see link above), to improve and extend the EU’s emission allowance trading scheme. This will come into force in 2013. The revised EU ETS Directive forms part of the EU 2020 Climate & Energy Package agreed in December 2008. The Directive will be passed in two stages: Stage 1 on 31 December 2009, and Stage 2 by the end of 2012.
- Aviation Directive 2008/101/EC (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32008L0101) This Directive amends the EU Emissions Trading Directive 2003/87/EC to include aviation from 2012. Monitoring of aviation emissions and benchmarking data began in January 2010.
- Linking Directive (2004/101/EC) (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0101:EN:NOT) This Directive amends the EU Emissions Trading Directive 2003/87/EC to enable Member States to allow operators to use credits obtained through Kyoto Mechanisms (CERs - Certified Emissions Reductions and ERUs - Emission Reduction Units).
- EU Emissions Trading Directive 2003/87/EC (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0087:EN:NOT) Legal text of EU ETS which came into force on 25 October 2003.
- Monitoring, reporting and verification of greenhouse gas emissions in the EU ETS (http://ec.europa.eu/clima/policies/ets/monitoring/index_en.htm)
Directions

This Direction given by the Secretary of State for Energy and Climate Change has been made under section 40 of the Environment Act 1995 regarding the Union Registry:

Direction given by the Secretary of State for Energy and Climate Change under section 40 of the Environment Act 1995 (https://assets.publishing.service.gov.uk/media/5a7b05f740f0b66a2fc0491f/union_registry_direction.pdf) (PDF, 22.2 KB, 1 page)

DECC have published the following sets of directions from Ministers to their appropriate regulators.

These directions direct the regulator on calculating small emitter opt-out emission targets (https://www.gov.uk/government/publications/secretary-of-state-direction-on-calculating-small-emitter-opt-out-emission-targets) and calculating penalties for operating an EU ETS activity without a permit (https://www.gov.uk/government/publications/direction-from-the-secretary-of-state-on-calculating-penalties-for-operating-an-eu-ets-activity-without-a-permit).

These directions are required under our new 2012 EU ETS Regulations and came into force on 1 January 2013.

The following Direction given by the Secretary of State for Energy and Climate Change (https://assets.publishing.service.gov.uk/media/5a7b20fae5274a319e77d37b/Murco_-_EA_Direction_15_March_2013__2_.pdf) (PDF, 20.1 KB, 2 pages) has been made under section 40 of the Environment Act 1995 regarding the serving of civil penalty notices under the Greenhouse Gas Emissions Trading Scheme Regulations 2005.

The following Direction given by the Secretary of State for Energy Security and Net Zero (https://assets.publishing.service.gov.uk/media/6790f19120bce57216a2f159/direction-to-the-enivironment-agency-on-legacy-eu-penalties-21-november-2024.pdf) (PDF, 156 KB, 3 pages) has been made under section 40 of the Environment Act 1995 regarding the interpretation of regulation 54(1) of the Greenhouse Gas Emissions Trading Scheme Regulations 2012.

Determinations of the EU ETS carbon price

This Determination is made by the Secretary of State for Energy and Climate Change under regulation 49 of the Greenhouse Gas Emissions Trading Scheme Regulations 2012.
- Determination by the Secretary of State for Energy and Climate Change of the 2014 carbon price under regulation 49 of the Greenhouse Gas Emissions Trading Scheme Regulations 2012 (https://www.gov.uk/government/publications/determinations-of-the-eu-ets-carbon-price)
This Determination is to enable the regulator to calculate a number of civil penalties for non-compliance with the EU ETS in 2014 (the 2013 carbon price is set by default in the Regulations).

For the following years, DECC will publish updated values in November each year ahead of the relevant compliance period.

Appeal determinations

Previous appeals (http://webarchive.nationalarchives.gov.uk/20121025080026/http://www.decc.gov.uk/en/content/cms/emissions/eu_ets/publications/publications.aspx) heard by The Secretary of State and determined under the Greenhouse Gas Emissions Trading Scheme Regulations 2005 can be viewed on the National Archives.

EU ETS research and publications

All the publications relevant to the previous phases (http://webarchive.nationalarchives.gov.uk/20121025080026/http://www.decc.gov.uk/en/content/cms/emissions/eu_ets/publications/publications.aspx) are available via the National Archives.
- Phase I: this includes compliance and results, independent reports on Phase I commissioned by the UK Government.
- Phase II: Compliance and results, Phase II emissions projections
- aviation
- research currently underway/planned research
Phase III

Phase III publications pre 2012 (http://webarchive.nationalarchives.gov.uk/20121025080026/http://www.decc.gov.uk/en/content/cms/emissions/eu_ets/publications/publications.aspx) are available on the National Archive. Aviation publications from 2012 onwards will be available on this page shortly.

Evidence review of the EU ETS

A literature review by Imperial Consultants considered the evidence on the effectiveness of the EU ETS in driving industrial abatement. This review broadly considered evidence on whether the EU ETS has driven abatement, which elements of the EU ETS drive abatement and how the EU ETS interacts with other policies. The report also identifies evidence gaps and suggests some directions for future research.