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aria-describedby="ecl-menu-item-ecl-menu-1676845766-1-link" aria-expanded="false" ><span class="ecl-button__container"><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div class="ecl-menu__mega" data-ecl-menu-mega ><ul class="ecl-menu__sublist"><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="https://ec.europa.eu/info/departments/climate-action_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="What we do" >What we do</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="https://commission.europa.eu/persons/kurt-vandenberghe_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Our Director General" >Our Director General</a></li><li class="ecl-menu__subitem ecl-menu__see-all"><a href="https://commission.europa.eu/about-european-commission/departments-and-executive-agencies/climate-action_en" class="ecl-link ecl-link--standalone ecl-link--icon ecl-menu__sublink" ><span class="ecl-link__label">See all</span><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-link__icon" focusable="false" aria-hidden="true" ><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#arrow-left"></use></svg></a></li></ul></div></li><li class="ecl-menu__item ecl-menu__item--has-children" data-ecl-menu-item data-ecl-has-children aria-haspopup aria-expanded="false" id="ecl-menu-item-ecl-menu-1676845766-2"><a href="/climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__link" data-untranslated-label="Climate change" data-ecl-menu-link id="ecl-menu-item-ecl-menu-1676845766-2-link" >Climate change</a><button class="ecl-button ecl-button--ghost ecl-menu__button-caret ecl-button--icon-only" type="button" data-ecl-menu-caret aria-label="Access item's children" aria-describedby="ecl-menu-item-ecl-menu-1676845766-2-link" aria-expanded="false" ><span class="ecl-button__container"><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div class="ecl-menu__mega" data-ecl-menu-mega ><ul class="ecl-menu__sublist"><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/climate-change/causes-climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Causes of climate change" >Causes of climate change</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/climate-change/consequences-climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Consequences of climate change" >Consequences of climate change</a></li><li class="ecl-menu__subitem ecl-menu__see-all"><a href="/climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-link--icon ecl-menu__sublink" ><span class="ecl-link__label">See all</span><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-link__icon" focusable="false" aria-hidden="true" ><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#arrow-left"></use></svg></a></li></ul></div></li><li class="ecl-menu__item ecl-menu__item--current ecl-menu__item--has-children" data-ecl-menu-item data-ecl-has-children aria-haspopup aria-expanded="false" id="ecl-menu-item-ecl-menu-1676845766-3"><a href="/eu-action_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__link ecl-menu__link--current" data-untranslated-label="EU Action" data-ecl-menu-link id="ecl-menu-item-ecl-menu-1676845766-3-link" >EU Action</a><button class="ecl-button ecl-button--ghost ecl-menu__button-caret ecl-button--icon-only" type="button" 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data-untranslated-label="EU competences in the field of climate action" >EU competences in the field of climate action</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/european-climate-law_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="European Climate Law" >European Climate Law</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-strategies-targets_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate strategies & targets" >Climate strategies & targets</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/adaptation-climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Adaptation to climate change" >Adaptation to climate change</a></li><li class="ecl-menu__subitem ecl-menu__subitem--current" data-ecl-menu-subitem ><a href="/eu-action/eu-emissions-trading-system-eu-ets_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink ecl-menu__sublink--current" data-untranslated-label="EU Emissions Trading System (EU ETS)" aria-current="page" >EU Emissions Trading System (EU ETS)</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/fluorinated-greenhouse-gases_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Fluorinated greenhouse gases " >Fluorinated greenhouse gases </a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/industrial-carbon-management_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Industrial Carbon Management" >Industrial Carbon Management</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/carbon-removals-and-carbon-farming_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Carbon Removals and Carbon Farming" >Carbon Removals and Carbon Farming</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/effort-sharing-member-states-emission-targets_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Effort sharing: Member States' emission targets" >Effort sharing: Member States' emission targets</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/land-use-sector_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Land use sector" >Land use sector</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/eu-funding-climate-action_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="EU funding for climate action" >EU funding for climate action</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/transport_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Transport" >Transport</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/international-action-climate-change_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="International action on climate change" >International action on climate change</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/ozone-layer_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Ozone layer" >Ozone layer</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/local-and-regional-climate-action_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Local and regional climate action" >Local and regional climate action</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-and-nature_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate and nature" >Climate and nature</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-disinformation_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate disinformation" >Climate disinformation</a></li><li class="ecl-menu__subitem ecl-menu__see-all"><a href="/eu-action_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-link--icon ecl-menu__sublink" ><span class="ecl-link__label">See all</span><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-link__icon" focusable="false" aria-hidden="true" ><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#arrow-left"></use></svg></a></li></ul></div></li><li class="ecl-menu__item ecl-menu__item--has-children" data-ecl-menu-item data-ecl-has-children aria-haspopup aria-expanded="false" id="ecl-menu-item-ecl-menu-1676845766-4"><a href="/citizens_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__link" data-untranslated-label="Citizens" data-ecl-menu-link id="ecl-menu-item-ecl-menu-1676845766-4-link" >Citizens</a><button class="ecl-button ecl-button--ghost ecl-menu__button-caret ecl-button--icon-only" type="button" data-ecl-menu-caret aria-label="Access item's children" aria-describedby="ecl-menu-item-ecl-menu-1676845766-4-link" aria-expanded="false" ><span class="ecl-button__container"><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div class="ecl-menu__mega" data-ecl-menu-mega ><ul class="ecl-menu__sublist"><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="https://climate-pact.europa.eu/index_en" class="ecl-link 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aria-expanded="false" id="ecl-menu-item-ecl-menu-1676845766-6"><a href="/funding-opportunities_en?prefLang=fi" class="ecl-link ecl-link--standalone ecl-menu__link" data-untranslated-label="Funding opportunities" data-ecl-menu-link id="ecl-menu-item-ecl-menu-1676845766-6-link" >Funding opportunities</a><button class="ecl-button ecl-button--ghost ecl-menu__button-caret ecl-button--icon-only" type="button" data-ecl-menu-caret aria-label="Access item's children" aria-describedby="ecl-menu-item-ecl-menu-1676845766-6-link" aria-expanded="false" ><span class="ecl-button__container"><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div class="ecl-menu__mega" data-ecl-menu-mega ><ul class="ecl-menu__sublist"><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a 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role="presentation"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></li><li class="ecl-breadcrumb__segment ecl-breadcrumb__current-page" data-ecl-breadcrumb-item="static" aria-current="page"><span>Use of international credits</span></li></ol></nav><div class="ecl-page-header__info"><h1 class="ecl-page-header__title"><span>Use of international credits</span></h1></div></div></div> </div> <main class="ecl-u-pb-xl" id="main-content" data-inpage-navigation-source-area="h2.ecl-u-type-heading-2, div.ecl-featured-item__heading"> <div class="ecl-container"> <div class="ecl-row"> <div class="ecl-col-s-12 ewcms-top-sidebar"> <div> <div data-drupal-messages-fallback class="hidden"></div> </div> </div> </div> <div class="ecl-row"> <div class="ecl-col-s-12"> <div id="block-ewcms-theme-main-page-content" data-inpage-navigation-source-area="h2, div.ecl-featured-item__heading" class="ecl-u-mb-l"> <article dir="ltr"> <div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1365"></a> <div class="ecl-row inpage-navigation-container"> <div class="ecl-col-l-3"> <nav class="ecl-inpage-navigation oe-theme-ecl-inpage-navigation ecl-u-z-dropdown" data-ecl-auto-init="InpageNavigation" data-ecl-auto-initialized="true" data-ecl-inpage-navigation="true" aria-labelledby="ecl-inpage-navigation-1953752252" ><div class="ecl-inpage-navigation__title" id="ecl-inpage-navigation-1953752252">Page contents</div><div class="ecl-inpage-navigation__body"><div class="ecl-inpage-navigation__trigger-wrapper"><button type="button" class="ecl-inpage-navigation__trigger" id="ecl-inpage-navigation-1953752252-trigger" data-ecl-inpage-navigation-trigger="true" aria-controls="ecl-inpage-navigation-list" aria-expanded="false"><span class="ecl-inpage-navigation__trigger-current" data-ecl-inpage-navigation-trigger-current="true">Page contents</span><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-inpage-navigation__trigger-icon" focusable="false" aria-hidden="false" ><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></button></div><ul class="ecl-inpage-navigation__list" data-ecl-inpage-navigation-list="true" id="ecl-inpage-navigation-1953752252-list"></ul></div></nav> </div> <div class="ecl-col-l-9" data-inpage-navigation-source-area="h2, div.ecl-featured-item__heading"> <div class="ecl-u-mb-2xl"> <a id="paragraph_1351"></a> <div class="ecl"><p>On 14 July 2021, the European Commission adopted a <a href="/error/404_en?prefLang=fi">series of legislative proposals</a> setting out how it intends to achieve <a href="/eu-action/climate-strategies-targets/2050-long-term-strategy_en?prefLang=fi">climate neutrality in the EU by 2050</a>, including the intermediate <a href="/error/404_en?prefLang=fi">target of an at least 55% net reduction in greenhouse gas emissions by 2030</a>. The package proposes to revise several pieces of EU climate legislation, including the EU ETS, Effort Sharing Regulation, transport and land use legislation, setting out in real terms the ways in which the Commission intends to reach EU climate targets under the European Green Deal.</p> <p>International credits are financial instruments that represent a tonne of CO<sub>2</sub> removed or reduced from the atmosphere as a result of an emissions reduction project.</p> <p>At present, international credits are generated through two mechanisms set up under the <a href="http://unfccc.int/kyoto_protocol/items/2830.php" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">Kyoto Protocol</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a>. These are:</p> <ul> <li><a href="https://cdm.unfccc.int/" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">Clean Development Mechanism</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a> (CDM) – allowing industrialised countries with a greenhouse gas reduction commitment (called Annex 1 countries) to invest in projects that reduce emissions in developing countries as an alternative to more expensive emissions reductions in their own countries</li> <li><a href="http://unfccc.int/kyoto_protocol/mechanisms/joint_implementation/items/1674.php" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">Joint Implementation</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a> (JI) – allowing industrialised countries to meet part of their required cuts in greenhouse gas emissions by paying for projects that reduce emissions in other industrialised countries</li> </ul> <p>Joint Implementation provides for the creation of emission reduction units (ERUs), whereas the Clean Development Mechanism provides for the creation of certified emission reductions (CERs).</p> <p>The <a href="/error/404_en?prefLang=fi">Paris Agreement</a> established a new market mechanism to replace the CDM and JI after 2020.</p></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1352"></a> <h2 class="ecl-u-type-heading-2">Use of international credits in EU ETS phase 3 (2013-2020)</h2> <div class="ecl"><p>Participants in the EU ETS can use international credits from CDM and JI towards fulfilling part of their obligations under the EU ETS until 2020, subject to qualitative and quantitative restrictions.</p> <p>As the world's largest carbon market, the EU ETS is currently the biggest source of demand for international credits, making it the main driver of the international carbon market and the main provider of clean energy investment in developing countries and economies in transition.</p> <h3>Qualitative restrictions</h3> <p>Credits are accepted from all types of projects, except:</p> <ul> <li>nuclear energy projects;</li> <li>afforestation or reforestation activities (LULUCF);</li> <li>projects involving destruction of industrial gases (HFC-23 and N<sub>2</sub>O).</li> </ul> <p>Credits from hydroelectric projects exceeding 20 MW of installed capacity can only be accepted under certain conditions.</p> <p>In addition, the use of new project credits/CERs after 2012 is prohibited, unless the project is registered in one of the least developed countries (LDC).</p> <h3>Quantitative restrictions</h3> <p>The EU legislation specifies <strong>maximum limits</strong> on the eligible international credits that can be used under the EU ETS for compliance in phase 3.</p> <p>The initial international credit <a href="https://ec.europa.eu/clima/ets/">entitlements</a> for each participant to the EU ETS for phases 2 and 3 combined were determined by Member States and then approved by the Commission in line with the relevant legislation.</p> <p>Participants to the EU ETS used 1.058 billion tonnes of international credits in phase 2 (2008-2012) to account for their emissions. Unused entitlements were transferred to phase 3 (2013-2020).</p> <h2>Exchange of credits</h2> <p>Since phase 3, CERs and ERUs are <strong>no longer compliance units</strong> within the EU ETS and <strong>must be exchanged for EU ETS emission allowances</strong>. Operators must request the exchange of CERs and ERUs for general allowances up to their individual entitlement limit set within the Union Registry.</p> <p>Credits issued in respect of emission reduction in the <a href="/eu-action/international-action-climate-change/kyoto-1st-commitment-period-2008-12_en?prefLang=fi">first commitment period</a> of the Kyoto Protocol (2008-2012) had to be exchanged to EU allowances by 31 March 2015.</p></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1353"></a> <h2 class="ecl-u-type-heading-2">Use of international credits in EU ETS after 2020</h2> <div class="ecl"><p>The EU has a domestic <a href="/eu-action/climate-strategies-targets/2030-climate-targets_en?prefLang=fi">emissions reduction target</a> and does not currently envisage continuing the use of international credits for EU ETS compliance after 2020.</p> <p>The Paris Agreement lays out provisions on the use of markets to provide a clear and robust framework for <a href="/eu-action/eu-emissions-trading-system-eu-ets/international-carbon-market_en?prefLang=fi">linking carbon markets</a> in the future.</p> <p>Article 6 of the Paris Agreement provides for:</p> <ul> <li><strong>accounting rules</strong> requiring parties to apply robust accounting frameworks to approaches that involve the use of ‘internationally transferred mitigation outcomes’ towards nationally determined contributions. These rules will enable linking of schemes while ensuring the integrity of commitments.</li> <li>a <strong>mitigation mechanism</strong> to replace existing mechanisms (such as CDM and JI) and provide for certification of emission reductions for use towards nationally determined contributions. This could facilitate participation in international carbon markets on the basis of a defined contribution to mitigation.</li> </ul> <p>These provisions will need to be applied through implementing decisions over the coming years. While building on experience, they will need to be adapted to the new context in which all countries are making contributions through a variety of contribution types.</p></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1354"></a> <h2 class="ecl-u-type-heading-2">Documentation</h2> <div class="ecl"><p>Click on the + signs for more information.</p></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2207"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2207-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2207-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Eligibility of international credits</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2207-0-content" role="region" aria-labelledby="paragraph-2207-0-title" ><div class="ecl"><ul><li>08/11/2013 - <a href="http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32013R1123">Commission Regulation (EU) No 1123/2013 on determining international credit entitlements</a></li><li>07/06/2011 - <a href="http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32011R0550">Commission Regulation (EU) No 550/2011 determining certain restrictions applicable to the use of international credits from projects involving industrial gases</a><ul><li><a href="/document/download/e725f312-0302-44a5-9046-42a58a937758_en?filename=sec_2010_yyy_en.pdf&prefLang=fi">Impact asssessment</a></li></ul></li><li>Positive and negative credit lists <ul><li><a href="/document/download/9412115e-1038-43f5-a706-ae6928f581d6_en?filename=general_positive_list_en.xlsx&prefLang=fi">General positive list</a></li><li><a href="/document/download/aa2b3789-fc30-474e-bc0f-1ddd9586b7e4_en?filename=general_negative_list_en.xlsx&prefLang=fi">General negative list</a></li><li><a href="/document/download/7419ef19-b4da-4f5b-b53b-4abfe2f9e252_en?filename=explanatory_note_credit_lists_en.pdf&prefLang=fi">Explanatory note on the credit lists(47 kB)</a></li></ul></li><li>Harmonised rules regarding large hydroelectric dam projects: <ul><li>27/10/2004 - <a href="http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32004L0101">Directive 2004/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC in respect of the Kyoto Protocol's project mechanisms</a></li><li><a href="/document/download/6569c3d6-f1df-4a93-9f51-8fe706a0ebcb_en?filename=art11b6_guide_en.pdf&prefLang=fi">Guidelines on the application of Article 11(b) 6 of Directive 2004/101/EC(55 kB)</a></li><li><a href="/document/download/af8a73f4-f2b0-414c-9493-bfde8716a65a_en?filename=art11b6_comp_temp_en.pdf&prefLang=fi">Project compliance questionnaire(75 kB)</a></li></ul></li></ul><ol></ol></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2207-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2207-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">A new market mechanism/reforming the CDM/JI</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2207-1-content" role="region" aria-labelledby="paragraph-2207-1-title" ><div class="ecl"><ol><li><a href="/news-your-voice/news/eu-and-brazil-agree-ground-breaking-proposal-carbon-markets-paris-climate-talks-2015-12-08_en?prefLang=fi">The EU-Brazil Joint Proposal</a></li><li><a href="http://www4.unfccc.int/submissions/Lists/OSPSubmissionUpload/106_99_130773885444519701-LV-05-29-Voluntary%20submission%20on%20markets.pdf" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">29th May 2015 - Paris Agreement and Markets and Accounting</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a></li><li><a href="https://unfccc.int/files/kyoto_protocol/mechanisms/application/pdf/nmm_eu_submission.pdf" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">29th September 2014 on NMM</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a></li><li><a href="http://unfccc.int/files/kyoto_protocol/mechanisms/application/pdf/it-09-29-fva_eu_submission.pdf" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">29thth September 2014 on FVA</span><svg class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true" xmlns:xlink="http://www.w3.org/1999/xlink"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external" /></svg></a></li></ol></div></div></div></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1355"></a> <h2 class="ecl-u-type-heading-2">Studies</h2> <div class="ecl"><p>Click on the + signs for more information.</p></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2209"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2209-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2209-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Studies</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2209-0-content" role="region" aria-labelledby="paragraph-2209-0-title" ><div class="ecl"><ul><li><a href="/document/download/c2279e34-982c-4967-bdf0-badec982a636_en?filename=clean_dev_mechanism_en.pdf&prefLang=fi">How additional is the Clean Development Mechanism?</a></li><li><a href="/document/download/78e04de9-bddd-42fb-a37f-d6a982b30169_en?filename=final_report_en.pdf&prefLang=fi">Study on the Integrity of the Clean Development Mechanism (December 2011)</a><ul><li><a href="/document/download/b40fd8ec-496e-48ec-ba2b-f10224f6591b_en?filename=sustainable_development_en.pdf&prefLang=fi">Briefing paper "Sustainable Development and Social Equity"</a></li><li><a href="/document/download/b461286b-55a3-4622-9175-35eda3ff81a3_en?filename=technology_transfer_en.pdf&prefLang=fi">Briefing paper "Technology Transfer through the Clean Development Mechanism (CDM)"</a></li><li><a href="/document/download/7356827a-f3f4-4e19-9f48-b6cebceca999_en?filename=political_lock_in_en.pdf&prefLang=fi">Briefing paper "Political Lock-in in the context of the CDM"</a></li><li><a href="/document/download/af53d682-4256-449d-82fb-79a5e354a5a6_en?filename=governance_en.pdf&prefLang=fi">Briefing paper "Governance of the Clean Development Mechanism (CDM)"</a></li><li><a href="/document/download/f052bfb8-7bf0-4d72-837f-03e9dbeb0b54_en?filename=additionality_baseline_en.pdf&prefLang=fi">Briefing paper "Baseline Setting and Additionality Testing within the Clean Development Mechanism (CDM)"</a></li><li><a href="/document/download/ba657438-dd41-4fb1-affc-a5ad791ffe8c_en?filename=ji_track_en.pdf&prefLang=fi">Briefing paper "JI Track 1 preliminary assessment"</a></li><li><a href="/document/download/9f44a48c-b7cc-41de-93a6-6b57e20bdf6a_en?filename=potential_leakage_en.pdf&prefLang=fi">Scoping paper "The potential for CDM induced leakage in energy intensive sectors"</a></li></ul></li></ul></div></div></div></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1356"></a> <h2 class="ecl-u-type-heading-2">FAQ</h2> <div class="ecl"><h3>Eligibility</h3></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1361"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-1361-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-1361-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Can I use international credits for compliance in the EU ETS Phase 3? Which ones?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-1361-0-content" role="region" aria-labelledby="paragraph-1361-0-title" ><div class="ecl"><p>Yes, subject to the quantitative and qualitative restrictions. De facto this means that as from 1 April 2015, only international credits from projects registered in an LDC post 2012 are eligible for use in the EU ETS, except for credits from nuclear energy projects, afforestation or reforestation projects (LULUCF) and projects involving the destruction of industrial gases (HFC-23 and N2O). Credits from hydroelectric projects exceeding 20 MW of installed capacity can only be accepted under certain conditions. Furthermore, international credits must be exchanged for EU allowances before they can be used for compliance in the EU ETS. Credits issued in respect of emission reduction in the first commitment period of the Kyoto Protocol (2008-2012) had to be exchanged with EU allowances by the deadline of 31 March 2015.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-1361-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-1361-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What happens if a country loses its Least Developed Country (LDC) status?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-1361-1-content" role="region" aria-labelledby="paragraph-1361-1-title" ><div class="ecl"><p>A project in an LDC that is included in the UN LDC list when the project is registered by the CDM Executive Board may continue to generate credits up to 2020, whatever happens to the UN LDC list.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-1361-2-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-1361-2-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">How are qualitative restrictions tracked and controlled?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-1361-2-content" role="region" aria-labelledby="paragraph-1361-2-title" ><div class="ecl"><p>Qualitative restrictions are tracked and controlled through the introduction of automatic checks in the Union registry, based on the information regarding the project ID and the commitment period identifier of relevant international credits.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-1361-3-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-1361-3-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Are there further proposals under consideration to apply qualitative restriction to any specific project type?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-1361-3-content" role="region" aria-labelledby="paragraph-1361-3-title" ><div class="ecl"><p>The EU ETS Directive provides for use restrictions to be introduced as part of the implementing provisions for credits which are otherwise useable during Phase 3 of the EU ETS. While the legislation allows putting in place further use restrictions, the European Commission is currently not considering any additional use restrictions for Phase 3. However, the EU's domestic 2030 target does not currently envisage continuing the use of international credits after 2020.</p></div></div></div></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1362"></a> <div class="ecl"><h3>Exchange of international credits for allowances</h3></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1364"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-1364-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-1364-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">How will the exchange work?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-1364-0-content" role="region" aria-labelledby="paragraph-1364-0-title" ><div class="ecl"><p>The process for the exchange is described in detail in the Registry Regulation (Article 59-61). An account representative can request an exchange of eligible international credits from an operator holding account or an aircraft operator holding account in the Union registry. The exchange request needs to be approved by a second person nominated as additional account representative, or, if no additional account representative is nominated for the account, by a second account representative different than the one who initiated the request. The exchange process is automated: after the international credits are transferred to a central account, an equivalent number of allowances will be transferred automatically to the account from which the exchange was requested.</p><p>An operator can request as many exchanges of credits for allowances as needed, provided it does not exceed its international credit entitlement. The international credit entitlement tables contain entitlements calculated for each installation and aircraft operator by Member Stats in accordance with the Regulation on international credit entitlements. The exchange can take place at any time during the calendar year. 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