Pooling under EU ETS rules
European Union Emission Trading Scheme contains legal framework for a similar institution which can be assessed as analogous to the CEA, but to a limited extent only. The provision at issue is Article 28 of the Directive 2003/87/EC in the wording applying till 31 December 2012.
Operators forming a pool were required to nominate a trustee:
- to be issued with the total quantity of allowances (instead of installations);
- to be responsible for surrendering allowances equal to the total emissions from installations in the pool;
- to be subject to the penalties applicable for breaches of requirements to surrender sufficient allowances to cover the total emissions from installations in the pool.
The responsibility of the trustee in the EU ETS has been shaped as subsidiary only, since in the event that the trustee failed to comply with the penalties each operator of an installation in the pool was responsible in respect of emissions from its own installation.
The pool under EU ETS rules wasn’t especially preferable option as the high-level approval of the Member State and the European Commission was required in every instance. Moreover, the shortcomings of the legal framework, especially inconsistencies of the above provisions with the Registry Regulation caused that pooling wasn’t frequently used in the European carbon market.