The Role of Emission Allowance Trading in European Environmental Policy

In the ongoing process of further reducing the impact of human behaviour on the environment, the toolbox of instruments for environmental protection under European environmental law is continuously expanding and refining itself. FIELD believes the environment can greatly benefit from continuous research and dialogue that explores new regulatory approachesand further refines existing ones. One of the new instruments that is increasingly being discussed is the concept of emission allowance trading.

FIELD's extensive experience with the development of the European greenhouse gas emission allowance trading regime has led to a number of requests for FIELD to assist governments and NGOs in examining how allowance trading can strengthen existing environmental regulation in Europe.

In January 2002 FIELD was asked by the Netherlands Ministry of Spatial Planning, Housing and the Environment (VROM) to conduct a study to assess the relationship between emission allowance trading and EU legislation, in particular the IPPC Directive (Integrated Pollution Prevention and Control). FIELD conducted this study in close collaboration with the London and Brussels based Institute for European Environmental Policy (IEEP). The final report of this study was issued in October 2002 and presented at the first workshop of the European Dialogue on Exploring New Approaches to Regulating Industrial Installations (ENAP project) on 21 and 22 November 2002 in Scheveningen, The Netherlands.

In particular, the ENAP project is looking at the linkage of internal company environmental management systems with permitting and external enforcement, the issue of site-based permits for a number of installations, and the role of such regulations within national or regional emissions trading schemes. FIELD and IEEP have been requested by the Dutch government to conduct a series of background studies for the ENAP project and to draft the workshop reports.

Working towards an Emissions Trading Directive

Providing the basis for a CDM / JI Linking Directive

Project Documents:

FIELD and IEEP, "Assessment of the Relationship between Emissions Trading and EU Legislation, in particular the IPPC Directive", study conducted for VROM, final report, 31 October 2002. Available in PDF.

FIELD and IEEP, Final Report on the ENAP Workshop on Emissions Trading in NEC Substances (in particular NOx and SOx), 21 and 22 November 2002, Kurhaus, The Hague/Scheveningen, The Netherlands. Available in PDF.

Background document to ENAP (available on-line here).

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