EU ETS emissions increased in 2010 but remain well below pre-crisis level according to the Commission. To the Climate Action Commissioner Connie Hedegaard, the emissions increase in 2010 reflects the economic recovery, but even after the economy coming back to normal, the EU ETS emissions remain well below the cap for the 2008-2012 trading period.

The increase was over 3% last year, according to the information provided by Member State registries. The EU ETS covers more than 12,000 power plants and manufacturing installations in the 27 EU member states, Norway and Liechtenstein. This increase in emissions is in line with held expectations and analysts' forecasts ahead of the data release. It can be attributed to the economic recovery following the recession which caused an exceptional 11.6% fall in emissions in 2009. Nevertheless, according to the Commission this increase is likely to be substantially lower than the rebound in output from the installations concerned given that the average industrial production index in the EU 27 increased by 6.7% in 2010 compared to 2009.

In addition, installations can surrender international emission reduction credits since 2008 generated through the Kyoto Protocol’s flexible mechanisms in order to offset part of their emissions. From January 2013 until 2020, the EU ETS will be substantially reformed for the third trading period. The legislation revising the Emissions Trading Directive was adopted as part of the EU climate and energy package on 23 April 2009 laying down revised rules for the ETS after 2012 until 2020 and beyond.

Companies' level of compliance with the EU ETS rules was high. Only 2% of the installations participating did not surrender allowances covering all their 2010 emissions. However, these installations are typically small and together account for less than 2% of emissions covered by the EU ETS.