Use of project mechanisms in 2013–2020
Operators in the EU emissions trading system (ETS) are allowed to use the project mechanisms to fulfil their commitments. Project credits (ERUs and CERs) earned in JI and CDM projects that comply with the Kyoto Protocol can be used in the EU ETS, but the rules concerning their use were changed in the third emissions trading period 2013–2020. Operators can use project credits to meet their targets by exchanging them for emission allowances (EUA) valid for the third emissions trading period.
The practical details of the exchange are specified at EU level in the EU Registry Regulation. The maximum amount of project credits that operators are entitled to use is examined as a whole over the period 2008–2020. The maximum entitlements for the whole period are determined in accordance with the EU Emissions Trading Directive (2003/87/EC). The Commission Regulation (EU) No 1123/2013 (RICE Regulation) further specifies the maximum limits on the use of credits in 2008–2020.
On 24 January 2014, the Finnish Energy Authority issued a decision on installation-specific maximum limits on credit entitlements. Limits for installations located in the Åland Islands are determined by the Government of Åland, and the limits for aircraft operators are set by the Finnish Transport Safety Agency Trafi.