CMW-IEDandDecarbonisation_v04.indd

The policy brief examines the gap between the EU Industrial Emissions Directive (IED) and the EU Emissions Trading System (ETS), noting that the IED's exclusion of greenhouse gas (GHG) emissions limits its effectiveness. It argues that the IED and ETS are complementary rather than duplicative, and recommends that the European Commission remove the exclusion of GHGs from the IED and introduce binding energy efficiency standards to drive industrial decarbonisation.

• The Industrial Emissions Directive (IED) regulates approximately 50,000 large industrial installations in Europe but explicitly excludes greenhouse gas (GHG) emissions from its scope, leaving their regulation to the EU Emissions Trading System (ETS).
• Resource and energy-intensive industries, including steel, cement, and chemicals, account for 19% of total European GHG emissions, totaling about 425 million tonnes of CO2 annually, with no decrease observed since 2012.
• The EU ETS provides limited incentive for industrial emission reductions because over 90% of industrial GHG emissions are covered by free allowances, which resulted in windfall profits exceeding €25 billion between 2008 and 2015.
• Stricter air pollution standards for large combustion plants (LCPs) have historically driven CO2 reductions by triggering plant closures and fuel switching, yet a third of EU fossil fuel capacity does not comply with the 2021 environmental performance standards.
• There is significant untapped potential for GHG mitigation through energy efficiency; a 2012 JRC study estimated that replacing LCP boilers based on 2006 BAT efficiencies could save 2.7Gt of CO2 compared to 2011 levels by 2030.
• The document recommends that the European Commission delete Article 9.1 of the IED to allow GHG limits in permits, introduce binding energy efficiency standards, and address methane emissions from landfills and underground hard coal mining.

APA

Carbon Market Watch (2020). CMW-IEDandDecarbonisation_v04.indd. https://carbonmarketwatch.org/wp-content/uploads/2020/06/A-New-Industry-Framework-For-Achieving-the-EU-Green-Deal-Zero-Pollution-Goal-1.pdf

Chicago

Carbon Market Watch. CMW-IEDandDecarbonisation_v04.indd. 2020. https://carbonmarketwatch.org/wp-content/uploads/2020/06/A-New-Industry-Framework-For-Achieving-the-EU-Green-Deal-Zero-Pollution-Goal-1.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=CMW-IEDandDecarbonisation_v04.indd |date=June 2020 |url=https://carbonmarketwatch.org/wp-content/uploads/2020/06/A-New-Industry-Framework-For-Achieving-the-EU-Green-Deal-Zero-Pollution-Goal-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2020cmwiedanddecarbonisationv04indd, author = {{Carbon Market Watch}}, title = {{CMW-IEDandDecarbonisation\_v04.indd}}, institution = {Carbon Market Watch}, year = {2020}, month = jun, url = {https://carbonmarketwatch.org/wp-content/uploads/2020/06/A-New-Industry-Framework-For-Achieving-the-EU-Green-Deal-Zero-Pollution-Goal-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }