Emissions trading: Allocation procedure for second trading period completed
1,625 installations receive free emissions allowances
During the allocation procedure for the second trading period of emissions trading (2008-2012) the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency awarded certificates to 1,625 installations. In the first trading period, 2005-2007, there were still 1,849 installations participating in emissions trading. The number has gone down because installations have been combined or decommissioned, and small facilities, e.g in the ceramics industry, have been excluded from emissions trading. The total budget amounts to roughly 452 million tonnes carbon dioxide (CO2) per year. Allocation of free emissions allowances can vary, as set out in the provisions of the Allocation Act 2012 (ZuG 2012): installations with annual CO2 emissions volumes of under 25,000 tonnes are exempt from any cuts. Industrial installations are subject to modest reductions of 1.25 per cent, whereas those in the energy sector receive very different allocations depending on specifics of the facility. These cuts provided for by law also vary.