APPENDIX 3: CALL FOR EVIDENCE
Introduction
The House of Lords European Union Committee will
be conducting a short inquiry, through its Environment and Agriculture
Sub-Committee (Sub-Committee D), into the European Commission's
proposal[79] (published
on January 23) for revisions to the EU's Emissions Trading System
(ETS).
The Committee is seeking evidence from stakeholders
and other interested parties, on the basis of which it will formulate
conclusions and recommendations designed to inform the House of
Lords and assist the UK Government and the EU institutions in
finalising the relevant legislation.
Closer examination of the draft Directive amending
the EU ETS will to some extent touch upon other elements of the
package of climate change and energy measures published by the
European Commission on January 23, including the draft Decision
on Greenhouse Gas Emissions (which affects sectors not included
in the ETS); the draft Directive on Carbon Capture and Storage
(which includes provisions on liabilities under the ETS); and
the draft Directive on the promotion of energy from renewable
sources (which is the subject of a separate inquiry by the House
of Lords' EU Sub-Committee B).
The issues
Against this background, the Committee hereby invites
you to submit written evidence to its Inquiry. The Committee would
find it helpful if, in addition to any general issues you may
wish to raise, you would focus on a number of specific issues,
listed below. It is recognised that those submitting evidence
will not necessarily have an interest in all the questions and
may therefore wish to be selective. Views are sought on the following:
Level of Emissions Reductions
The proposed level of emissions reductions and the
automatic change from 20% to 30% should an international agreement
be reached.
Scope and Operation
The sectors and gases that the Commission proposes
to include and exclude. We would be particularly interested in
views on the inclusion of Land Use, Land Use Change and Forestry
(LULUCF) sectors, including agriculture[80].
The practical application and enforceability of the
scheme.
The key strengths and weaknesses of the proposal.
You may wish to consider in particular:
the extent to which the scheme as currently designed
will encourage technological innovation;
whether it will result in the appropriate price signal
being sent;
whether it will be efficient and/or equitable.
The potential application of the new Article 24a
permitting allowances to be issued in respect of projects outside
the scope of the Community scheme that reduce greenhouse gas emissions.
Allocation and Auctioning
Whether decisions about the proportion of permits
to be allocated for free rather than auctioned should be taken
at the EU level or at the Member State level, and what the time-frame
for such decisions should be.
Which sectors (if any) should continue to receive
a proportion of their emissions permits allocated free of charge,
and for how long.
Whether the redistributive element of the Commission's
proposal (whereby poorer Member States are allocated more auctionable
emissions permits, thereby increasing the revenues accruing to
their Treasuries) is appropriate.
The international dimension
The extent to which EU operators should be allowed
to meet obligations under the ETS by investing in projects to
reduce emissions outside the EU through the Clean Development
Mechanism (CDM).
The likely feasibility of creating links between
the ETS and other similar schemes around the world.
79 Proposal for a Directive of the European Parliament
and of the Council amending Directive 2003/87/EC so as to improve
and extend the greenhouse gas emission allowance trading system
of the Community (COM(2008)16, 23.01.2008). Back
80
According to the UN Framework Convention on Climate Change, the
six land-use categories for the purposes of LULUCF are: forest
land; cropland; grassland; wetlands; settlements; and other land.
http://unfccc.int/methods_and_science/lulucf/items/1084.php Back
| 
