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19th November 2021
Consumer, Health & Environment Energy & Transport Internal Market

Op-Ed: “Energieversorgungscenter Dresden-Wilschdorf (C-938/19): Establishing the boundaries of a cogeneration installation for the free allocation of emission allowances” by Lucila de Almeida and Viola Cappelli

Introduction

The ultimate objective of the EU greenhouse gas emission allowance trading schemes (Emissions Trading System, ETS) is indisputable and, now more than ever, of recognised importance to combat the climate crisis. ETS uses economic incentives to encourage participants to reduce emissions. Participants are incentivised to emit quantities of greenhouse gases that are lower than the quantity of allowances originally allocated to them in order to sell the surplus to another participant, which has emitted more than its allowance. However, we cannot say that the free allocation of emission allowance calculation is equally clear and indisputable.

In Energieversorgungscenter Dresden-Wilschdorf (C-938/19), the Court of Jus

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