Information for Installation Operators
Participants in the Emissions Trading Scheme in Germany are operators of large energy-generating installations with a thermal output over 20 megawatts, as well as energy-intensive industrial installations. A list of relevant installation types can be found in Appendix 1 of the greenhouse gas emissions trading law (TEHG). From 2005, installation operators must be in possession of emission allowances. These are given out free of charge as set out in the allocation legislation in 2007 and can be freely traded within the EU. Companies that emit more greenhouse gases than their permits allow must acquire further credits. Companies with emissions below their allowance are free to sell their surplus credits. However, if a company does not fulfil its obligations to reduce its emissions, it will be fined. During the first trading phase (2005–2007), the fine is 40 Euros per ton of carbon dioxide emissions. In addition, the required reduction in emissions must be achieved.
In early April 2003, the EU member states and the European Parliament came to an agreement that allowed the trade in emission allowances that had been issued on the basis of CDM and JI climate protection projects. The relevant directive is known as the Linking Directive (Directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol’s project mechanisms). It has been in force since the 13th of November 2004. The Linking Directive permits operators of industrial or energy-generating installations participating in the EU Emissions Trading Scheme to partially fulfil their climate protection obligations during the first trade phase (2005–2007) by investing in CDM projects. From the second trade phase on, CDM as well as JI projects will be included. Sink projects are exempt from this regulation. Special regulations also apply to large dam projects.
On 30/09/2005, the Act on the Introduction of Project-Based Mechanisms in Accordance with the Kyoto Protocol to the United Nations Framework Convention on Climate Change of 11 December 1997 (German Act on Project-Based Mechanisms - ProMechG) came into force. Thus, the requirements of the Linking Directive that links the project-based mechanisms of Kyoto Protocol to the European Emissions Trading have been implemented as national law. Among other things, ProMechG regulates the recognition of CDM and JI projects in Germany. The legislation enables installation operators to fulfil their obligation of submitting emission certifications by using emission vouchers from CDM (from 2006) and JI projects (from 2008).
The Umweltbundesamt (UBA) has been appointed as the responsible national authority.