Editorial note

The Directive establishes a scheme for greenhouse gas emission allowance trading within the Community (the ‘Community scheme’) in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner (Article 1). The Directive applies to emissions from the activities listed in Annex I and greenhouse gases listed in Annex II (Article 2(1)). It applies without prejudice to any requirements pursuant to Directive 96/61/EC (Article 2(2)). The specific terms used throughout the Directive are defined in Article 3.

The Directive requires that from 1 January 2005, no installation undertakes any activity listed in Annex I resulting in emissions specified in relation to that activity unless its operator holds a permit issued by a competent authority (Article 4). Detailed guidance is provided on what an application for a greenhouse gas emissions permit must include (Article 5), along with the conditions for and contents of a greenhouse gas emissions permit when issued by a competent authority (Article 6). The operator of an installation must inform the competent authority of any changes planned in the nature or functioning, or an extension, of the installation which may require updating of the greenhouse gas emissions permit (Article 7). Member States must ensure that where installations carry out activities that are included in Annex I to Directive 96/61/EC, the conditions of, and procedure for, the issue of a greenhouse gas emissions permit are coordinated with those for the permit provided for in that Directive (Article 8).