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The Transfer Rule in the German Emissions Trading System

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image of Journal for European Environmental & Planning Law

The Allocation Act of the German Emissions Trading System offers an interesting 'transfer rule' which is unique in European Emissions Trading System: A plant operator may transfer the allocated emission allowances of a decommissioned facility to a new installation, if this installation replaces the old facility. Former Federal Environmental Minister Jürgen Trittin stressed, that this rule provides a major incentive for the renewal of the German power plant fleet by the erection of highly efficient new facilities. These modernisation efforts could make a major contribution to climate protection efforts. It can thus be expected, that a similar rule will also be implemented in the recently discussed Allocation Act for the next allocation period 2008-2012. It is thus worth exploring the details for the application of this rule.

Affiliations: 1: KERMEL & SCHOLTKA Rechtsanwälte, Berlin


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