European Emissions Trading (ETS) is a flexible mechanism foreseen in the context of the Kyoto Protocol and is the first intra-Community market instrument for regulating greenhouse gas (GHG) emissions.
Indeed, as part of its GHG emission reduction strategy and as a means of ensuring the effective achievement of its objectives, the European Union (EU) adopted Directive 2003/87/EC of 13 October 2013 establishing the European Emissions Trading Mechanism, which is currently transposed into national law by Decree-Law No 38/2013 of 15 March 2013 and Decree-Law No 93/2010 of 27 July 2010. The implementation of the EU ETS scheme started in 2005 and the first period elapsed between 2005 and 2007, considered by the European Commission as experimental and mainly learning for the following period: 2008-2012, which coincided with the Kyoto Protocol compliance period.
Under national legislation, the Portuguese Environment Agency was assigned the role of Competent Authority, with responsibilities for general coordination of the EU ETS process.
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