The Regulation on Specifying International Credit Entitlements of 2013–2020 (RICE) specifies the limits of CER and ERU used by installation and aircraft operators for surrendering emission allowances from 2013 onwards.
The so-called Burden Sharing is a Europe-wide agreement made by the then 15 Member States (EU-15) in 1998. It defines how the collective pledge to reduce emissions made in the Kyoto Protocol is split into individual reduction targets for the respective Member States. Germany committed itself to a 21 percent reduction in its greenhouse gas emissions. The Burden-Sharing-commitment applied to the 2008-2012 emissions.
In addition to Burden Sharing, the so-called Effort Sharing Decision specifies further reduction targets for the EU Member States by 2020. Germany committed itself to an additional reduction of 14 percent (based on 2005-2020 emissions).
The Linking Directive "links" (as the name implies) the internationally agreed pledges made in the Kyoto Protocol regarding project-based mechanisms to the EU ETS. Thus, not only the signatory states of the Kyoto Protocol, but also companies, can offset credits from these projects in emissions trading.
TEHG – German Greenhouse Gas Emission Allowance Trading Act
The German Greenhouse Gas Emission Allowance Trading Act (TEHG) implements the EU Directive on the European Emissions Trading Scheme at a national level.
The TEHG amendment of 15/07/2013 implements Regulation (EU) No. 600/2012 and creates a new legal framework for the accreditation of verifiers. In addition, selective rules are set for the compensation of the indirect CO2 cost (electricity price compensation), for the competent court regarding lawsuits against the German Environment Agency in the field of emissions trading and for the partitioning of the allocation amount after the partitioning of an installation.
The regulation for enforcing the Greenhouse Gas Emission Allowance Trading Act in the 2013-2020 trading period (EHV 2020) governs the handling of non-sustainable liquid biofuels, the convertibility of certified emission reductions that were registered after 31/12/2013, the procedure for the conversion of carbon credits and the certification of verifiers.
The Allocation Regulation specifies how the number of allowances allocated should be calculated and what documentation the applicant must provide. It also specifies how an application should be assessed within the framework of the TEHG.
The regulations for the free allocation of emission allowances in the third trading period can be found in the Decision No. 2011/278/EU of 27/04/2011. The 2020 Allocation Regulation implements this Decision at a national level.
The Allocation Acts for the first and the second trading period were compiled based on the relevant National Allocation Plan (NAP) and set out national targets for CO2 emissions as well as defined rules for the allocation and issuing of emission allowances.
Since there are no NAPs in the third trading period but a volume target (cap) set by the European Commission and standardised allocation rules for all Member States, there is no need for a 2020 Allocation Act.
The Emissions Trading Cost Regulation applied to the first trading period and contained regulations concerning fees charged by the DEHSt. Legal provisions for the Cost Regulation can be found in TEHG § 22 and ZuG 2007 § 23.
There is no Emissions Trading Cost Regulation for later trading periods.
The National Allocation Plan of the relevant trading period set out the total number of CO2 emission allowances to be allocated and defined the allocation rules and volumes. Since the third trading period (2013-2020), NAPs have no longer been compiled.
The Paris Agreement is the successor to the Kyoto Protocol. It was decided on 12/12/2015 at the Conference of the Parties of the United Nations Framework Convention on Climate Change and entered into force on 04/11/2016. The international community commits itself to limiting global warming to well below two degrees Celsius against pre-industrial levels. For the first time, not only industrialised countries, but also emerging and developing countries are obliged to contribute to climate protection. The EU has committed itself to reduce its greenhouse gas emissions by at least 40 percent by 2030 compared to 1990 levels.
The Kyoto Protocol came into effect on 16/02/2005 and is the first internationally binding legal contract on the mitigation of climate change. The signatory industrial states committed themselves to reducing emissions of climate-damaging gases for the period 2008-2012 by five percent compared to 1990 levels.
Under the Kyoto Protocol of the first period (2008-2012) the European Union committed itself to a reduction of its greenhouse gases by eight percent. The target could be achieved by national as well as communal EU measures. The European Emissions Trading Scheme for companies was considered the most important communal climate protection measure.
After the first commitment period had expired in December 2012, the international community agreed to extend the Kyoto Protocol ("Kyoto II") until 2020. Australia, the current 27 EU countries and other European countries agreed to participate in this second commitment period. Russia, Canada, Japan, and New Zealand announced their resignation.
The Marrakesh Accords are the result of the 7th Climate Conference's negotiations, which took place in Marrakesh in 2001. They include decisions regarding the Kyoto Protocol, the project mechanisms, sinks, and technology transfer.
United Nations Framework Convention on Climate Change
The political process leading to climate protection began in the late 1980s. Its first result was the Climate Convention, signed by almost all countries in Rio de Janeiro in 1992. Its proper name is United Nations Framework Convention on Climate Change (UNFCCC). It contains the objective "to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. All countries are called upon to contribute "in accordance with their common but differentiated responsibilities and respective capabilities."