The EU Emissions Trading System (EU ETS) was significantly revised as part of the EU Climate and Energy Package agreed by EU member states in 2008. The changes will take place from Phase III, which will run from 2013 to 2020, with a more ambitious, EU-wide cap on emissions. This will bring with it more emission reductions, more predictable market conditions and improved certainty for industry.
The Government support an EU move to a 30% emissions reduction target, and a significant part of this reduction should come from sectors covered by the EU ETS. An EU move to 30% would therefore mean a lower cap level, in turn delivering a higher carbon price which will stimulate investment in low carbon jobs and technologies, and help to put the EU and UK on track to meet 2050 emissions reduction targets.