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EU Emissions Trading Scheme

The EU emissions trading scheme came into operation on 1 January 2005. The scheme operates on a "cap and trade" basis. EU Member State governments are required to set an emissions cap for each installation in the scheme. The number of allowances allocated to each installation must be set down in the National Allocation Plan (NAP) for the period in question, which must be approved by the European Commission. 


National Allocation Plan 2008 - 2012

In preparation for the second phase of the EU Emissions Trading Scheme for the Kyoto Protocol Commitment Period (2008 - 2012), the Minister for the Environment, Heritage and Local Government engaged ICF Consulting and Byrne Ó Cléirigh Consultants to review and update greenhouse gas emission projections in the Kyoto Protocol commitment period 2008-2012.

Following consideration of the ICF/Byrne Ó Cléirigh Report, the Government has agreed on how the responsibility for bridging this gap will be shared between the Emissions Trading Sector (the 109 installations in the electricity and large industry sectors which have significant emissions) and the rest of the economy. The Trading Sector will meet about 3 million tonnes of the reduction, leaving about 4 million for the rest of the economy.


National Allocation Plan 2005 - 2007

The European Commission approved a National Allocation Plan (NAP) for Ireland for the 2005-2007 trading period in July 2004. The NAP available on the website of the EPA:, provides for the assignment of allowances among Irish installations participating in the scheme, of which there are just over 100 out of an EU-wide total of more than 11,400 installations.  A total of 22.32 million tonnes per year has been allocated to the sector for the three-year period. These installations include all fossil fuel power generation facilities and large industrial energy users such as cement manufacture, paper and pulp manufacture and food processing. Collectively, these installations would account for an estimated 35% of forecast emissions for the Kyoto commitment period, had there not been an emissions trading scheme.

EU Directives and National Legislation

The Minister for the Environment, Heritage and Local Government signed regulations SI 244 of 2006 on 9th May 2006 designating the Environmental Protection Agency as Focal Point for the purposes of Article 6 of the Kyoto Protocol and National Authority for the purposes of Article 12 of the Kyoto Protocol. In this capacity, any person in Ireland may apply to the agency for approval in respect of a project activity under Joint Implementation or the Clean Development Mechanism, respectively provided for under Article 6 and 12 of the Kyoto Protocol. The Regulations do not apply to project activities to be carried out in Ireland. The Environmental Protection Agency is currently putting the necessary application procedures in place. For further information, please see http://www.epa.ie/

SI 244 Kyoto Protocol Flexible Mechanisms 2006

SI 437 2004 Emissions Trading Regulations transposes the Emissions Trading Directive in Ireland and provides the framework for the implementation of the Scheme in Ireland, including the designation of the Environmental Protection Agency as the competent authority for administering the scheme.

SI 706 of 2005 amends the Emissions Trading Regulations to provide for the use of credits from the Kyoto Protocol project mechanisms by operators in the Emissions Trading Scheme.

Determining the Share of National Greenhouse Gas Emissions for Emissions Trading in Ireland 2008 - 2012

Determining the Share of National Greenhouse Gas Emissions for Emissions Trading in Ireland 2008 - 2012- the Final Report and Determining the Share of National Greenhouse Gas Emissions for Emissions Trading in Ireland 2008 - 2012 are available in the box headed Publications and Documents at the right hand side of the page.

Public Consultation
The Department has published preliminary projections of greenhouse gas emissions for the Kyoto period for public consultation in October 2005. Two documents were available to download for this public consultation.

Submissions recieved in relation to the public consultation are available here.

Comparative Analysis of first EU National Allocation Plans

The comparative analysis report by Ecofys, commissioned by the Department of the Environment, Heritage and Local Government is available to download in the Publications area of the site together with the appendices.

Further Information

Environment Protection Agency
EU Commission
Email: climatechange@environ.ie

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Publications & Documents

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Legislation