The bill would extend emissions trading to shipping and buildings

Automatic summary, not yet reviewed

1. The bill would amend Law 1/2005, which regulates greenhouse gas emissions trading, to incorporate two 2023 European directives that reform that system in the European Union.
2. Shipping would join the emissions trading system as of January 1, 2024. Shipping companies would receive no free allowances and would have to surrender allowances for a growing share of their emissions: 40% in 2024, 70% in 2025 and 100% from 2026.
3. A new, separate emissions trading system would be created for fuels used in buildings, road transport and other sectors. The so-called regulated entities would need authorization as of January 1, 2025 and would surrender allowances starting in 2028.
4. The deadline for stationary installations and aircraft operators to surrender emission allowances would move from April 30 to September 30 each year.
5. Free allocation of allowances would be phased out for goods covered by the Carbon Border Adjustment Mechanism, disappearing completely in 2034.
6. The Carbon Border Adjustment Mechanism would be regulated: the Ministry for the Ecological Transition would be the competent authority in Spain, and fines of 10 to 50 euros per tonne of unreported emissions are provided for during the transitional period.
7. In aviation, a reserve of free allowances for sustainable aviation fuels would be created for 2024 to 2030, and aircraft operators would have to offset their emissions under the international CORSIACORSIA An international civil aviation scheme to offset CO2 emissions from international flights. scheme.
8. The Government would have 24 months to produce a consolidated text of Law 1/2005 gathering and organizing all its rules.

Who it affects

• Shipping companies: They would have to surrender emission allowances for their emissions, gradually between 2024 and 2026, and would receive no free allowances.
• Regulated entities supplying fuels for buildings and road transport: They would need authorization from 2025, report their annual emissions and surrender allowances from 2028.
• Aircraft operators: They would have more time to surrender allowances (September 30) and would have to offset emissions under CORSIA.
• Importers of goods covered by the Carbon Border Adjustment Mechanism: They could face fines for failing to submit, or badly submitting, mechanism reports during the transitional period.
• Stationary industrial installations: Their free allocation of allowances could be reduced if they are covered by the Carbon Border Adjustment Mechanism or fail to follow energy audit recommendations.

Words worth knowing

Derecho de emisión (emission allowance)

A permit to emit one tonne of carbon dioxide equivalent. Polluting companies must buy or receive these allowances and surrender them according to what they emit.

RCDE UE (EU emissions trading system)

The European Union's system that caps emissions and lets companies buy and sell those permits.

Fuga de carbono (carbon leakage)

The risk that companies move production to countries with weaker climate rules to avoid costs.

Mecanismo de Ajuste en Frontera por Carbono (Carbon Border Adjustment Mechanism)

A European system that puts a carbon price on certain imported goods, so they compete on equal terms with goods made inside the Union.

CORSIA

An international civil aviation scheme to offset CO2 emissions from international flights.

It summarizes the drafting committee report. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries