Legal framework

International Agreement

Paris Agreement (2015)

Kyoto Protocol (1998) and Doha Amendment (2012)

United Nations Framework Convention on Climate Change (1992)

 

ETS Directive

The several European Directives that regulate the EU Emissions Trading Scheme (EU-ETS) and the corresponding decrees transposing it into national legislation are listed in the following table:

EU	Transposition in the Italian Law
Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC	D. Lgs 4 aprile 2006, n. 216 D. Lgs 7 marzo 2008, n. 51
DIRECTIVE 2008/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community	D. Lgs 13 marzo 2013, n. 30 D. Lgs 2 luglio 2015, n. 111
DIRECTIVE 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community
Regulation (EU) 2017/2392 of the European Parliament and of the Council amending Directive 2003/87/EC to continue current limitations of scope for aviation activities and to prepare to implement a global market-based measure from 2021
Directive (EU) 2018/410 of the European Parliament and of the Council amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments

Regulations of the Union Registry

Applicable to phase 3 of the EU-ETS (2013-2020):

Commission Regulation (EU) No 389/2013 establishing a Union Registry

Commission Delegated Regulation (EU) 2015/1844 amending Regulation (EU) No 389/2013 as regards the technical implementation of the Kyoto Protocol after 2012

Commission Regulation (EU) 2018/208 amending Regulation (EU) No 389/2013 establishing a Union Registry

Commission Delegated Regulation (EU) 2019/1123 amending Regulation (EU) No 389/2013 as regards the technical implementation of the second commitment period of the Kyoto Protocol

 

Applicable to phase 3 and 4 of the EU-ETS (2013-2020 and 2021-2030):

Commission Delegated Regulation (EU) 2019/1122 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry

 

Applicable to phase 4 of the EU-ETS (2021-2030):

Commission Delegated Regulation (EU) 2019/1124 amending Delegated Regulation (EU) 2019/1122 as regards the functioning of the Union Registry under Regulation (EU) 2018/842 of the European Parliament and of the Council

Market Regulations (MiFID/Mar)

The financial markets are regulated by the MiFID II directive (Directive 2014/65 /EU) and by the 2014/600 /EU Regulation (MIFIR), both entered into force on 3^rd January 2018, applicable to all authorized investment firms, to regulated markets , to data providers and third-country companies that provide investment services and activities.

The purpose of MiFID II is to improve the security and transparency of the financial system and to limit price speculation. In this directive emission allowances are classified for the first time as a financial product (Annex 1 C (11)), and trading of emission allowances as an investment service.

The MAD directive (2014/57/EU on penalties for market abuse) and MAR (Regulation 2014/596/EU on market abuse) complete this legal framework.

Auctions

Commission Regulation EU No 1031/2010 of 12 november 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community