European Union
EU Emission Trading Scheme (EU ETS) (Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC)
Legislative
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Related litigation cases
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ExxonMobil Production Deutschland GmbH v Bundesrepublik Deutschland
On March 10, 2016, ExxonMobil filed a challenge against Germany in the Verwaltungsgericht Berlin (Administrative Court, Berlin, Germany), concerning an application to the German Emissions Trading Authority (DEHSt) for the allocation of greenhouse gas emission allowances ("ghg allowances") free of...
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Borealis AB, Kubikenborg Aluminum AB, Yara AB, SSAB EMEA AB, Lulekraft AB, Vórmevórden i Nynóshamn AB, Cementa AB, Haganós Sweden AB v. Naturvardsverket
Eight companies operating greenhouse gas emitting installations challenged the final emissions allocations decided by the Swedish Environmental Protection Agency during Phase III of the EU Emissions Trading Scheme (EU ETS) after the correction factor calculation had been applied. The operators ar...
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Sandra Bitter v. Bundesrepublik Deutschland (European Court of Justice, 2015)
Sandra Bitter, insolvency administrator for the German company Ziegelwerk Höxter GmbH, filed a for a preliminary ruling on whether a fine of EUR 100 per tonne of carbon dioxide emitted imposed by German authorities on non-surrendered emissions prior to the company's insolvency violated the princi...
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Elektriciteits Produktiemaatschappij Zuid-Nederland EPZ NV v. Bestuur van de Nederlandse Emissieautoriteit
The European Court of Justice (EJC) held that a coal-fired power plant and unburned coal in a storage site constitute one installation covered by the EU Emissions Trading Scheme (EU ETS). The EJC further concluded that the coal lost due to self-heating while in storage could not be regarded as ex...
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Schaefer Kalk GmbH & Co. KG v. Bundesrepublik Deutschland
Schaefer Kalk GmbH & Co. KG (Schaefer Kalk) operates an installation for the calcination of lime in Hahnstótten, Germany, which is subject to the European Union Emissions Trading Scheme (ETS). In the process of getting its monitoring plan approved, Schaefer Kalk applied for authorisation to s...
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ArcelorMittal Rodange et Schifflange SA v. State of the Grand Duchy of Luxembourg
ArcelorMittal Rodange et Schifflange SA (ArcelorMittal) operated an installation in Schifflange, Luxembourg until the end of 2011, which was subject to the EU emissions trading scheme (ETS). Luxembourg's Minister of the Environment allocated ArcelorMittal a total quantity of 405,365 emissions all...
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PPC Power a.s. v. Finančné riaditeľstvo Slovenskej republiky and Daňový úrad pre vybrané daňové subjekty (European Court of Justice, 2018)
PPC Power operates an installation in Slovakia that is subject to the European Union Emissions Trading System (EU ETS). In addition to EU ETS requirements, the government of Slovakia imposed an 80% tax on emissions allowances that were transferred or unused, and therefore allocated free of charge...
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INEOS Kahn GmbH v. Bundesrepublik Deutschland (C58/17)
INEOS operates a petrochemical plant that incorporates an industrial thermal power plant to provide steam through the combustion of liquid and gaseous waste materials stemming from the manufacturing processes of the site's chemical production facilities.On January 23, 2012, INEOS applied to the G...
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Trinseo Deutschland Anlagengesellschaft mbH v. Bundesrepublik Deutschland
Trinseo operates an installation for the production of polycarbonate that obtains the steam needed for that production from a plant which is operated, on the same site, by another company, Dow Deutschland Anlagengesellschaft, which is subject to the emission allowance trading scheme established b...
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Greenpeace Luxembourg v. Schneider
In September 2019, Greenpeace Luxembourg brought an action in administrative court against the Luxembourgish Minister of Social Security, Roman Schneider. Greenpeace claims that the Minister failed to respond to an August letter asking for information regarding how Luxembourg's sovereign pension ...
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INEOS Koln GmbH v. Bundesrepublik Deutschland (C-572/16)
INEOS operates an installation that produces chemical products and that has been subject to compulsory emissions trading since 2018 through the EU Emissions Trading System (EU ETS).On 23 January 2012, INEOS applied to the German Emissions Trading Authority, within the prescribed time limit, for f...
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R. (Swiss International Airlines AG) v. Secretary of State for Climate Change and Energy (United Kingdom Court of Appeal, 2015)
The European Union temporarily suspended the greenhouse gas emissions allowance trading scheme for flights coming in and out of the EU, for the purpose of encouraging an agreement among members of the International Civil Aviation Organization to regulate aviation emissions. Flights between EU cou...
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Cemex UK Cement Ltd v. Department for the Environment, Food and Rural Affairs (Queen's Bench Division, Administrative Court, 2006)
A United Kingdom court dismissed an action by a cement company, which asserted that a change in the commissioning rule during Phase II of the National Allocation Plan (NAP) seriously disadvantaged one of its plants, violating the principle of equity. The court held that there was inevitably an el...
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Regina v. Dosanjh (Court of Appeal, 2014)
The defendants were involved in manipulation of the EU Emissions Trade Scheme, running companies that formed two artificial ‘trading chains' through which the fraud was operated. They were convicted of the common law offense of conspiring to cheat the public revenue and sentenced to terms of impr...
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In re E.ON Generacion S.A., Judgment No. 1205/2010 of Mar. 4, 2010
An energy retailing company brought suit against the General Government Administration of Spain, challenging Royal Decree 1370/2006 of November 24th (Official Bulletin of the State No. 282 of November 25, 2006), which implemented amendments to Spain's National Allocation Plan for greenhouse gas a...
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Judgment No. 5087/2009 of July 17, 2009 (Supreme Court of Spain, Administrative Litigation Division, Section 5)
Arcelor España, S.A. (previously known as Arcelaria Corporación Siderúrgica, S.A.) challenged the decision of the Council of Ministers of Spain of January 21, 2005, declaring the individual assignment of emissions credits for the 2005-2007 term. Arcelor argued the decision was void because (1) th...
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Société Arcelor Atlantique et Lorraine v. Premier Minister (European Court of Justice, Grand Chamber, 2008)
The European Court of Justice upheld provisions of Directive 2003/87 implemented by French legislation, which applied the greenhouse gas trading scheme to installations in the steel sector. Arcelor, a worldwide steel enterprise, challenged the directive under the principle of equality. Arcelor ar...
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ŠKO-ENERGO, s.r.o. v. Czech Appellate Financial Directorate (European Court of Justice, 2015)
ŠKO-ENERGO, s.r.o. acquired free greenhouse gas (“GHG”) emission allowances pursuant to Article 10 of Directive 2003/87 (“Article 10”), which provided that EU Member states must allocate at least 90% of allowances free of charge from 2008 through 2012. The Czech Republic Tax Office levied a 32% g...
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Republic of Poland v. European Commission (European Court of Justice, March 7, 2013)
Challenge brought by Poland against Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community. In support of the action, the Republic of Poland raised four pleas. The first alleged an infringement of the TFEU on the ground that the Commission di...
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Republic of Poland v. Commission of the European Communities (Court of First Instance, Second Chamber, 2009)
In 2006, the Republic of Poland notified the Commission of its NAP for the period from 2008 to 2012. In 2007, the Commission held that its NAP was incompatible with the criteria set forth in Directive 2003/87 and decided that the total annual quantities of emission allowances should be reduced to...
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Republic of Estonia v. Commission of the European Communities (Court of First Instance, Seventh Chamber, 2009)
In 2006, the Republic of Estonia notified the Commission of its NAP for the period from 2008 to 2012. In 2007, the Commission held that its NAP was incompatible with the criteria set forth in Directive 2003/87 and decided that the total annual quantities of emission allowances should be reduced t...
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Re Greenhouse Gas Emission Allowance: United Kingdom v. Commission of the European Communities (Court of First Instance of the European Communities, First Chamber, 2005)
European Court reversed a Commission of the European Communities decision barring the UK from amending its national allocation plan (NAP) under Article 9 of Directive 2003/87, which established a scheme for greenhouse gas (GHG) emission allowance trading within the European Community. A Member St...
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Lafarge Cement S.A. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Grupa Ożarów S.A. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Gόrażdże Cement S.A. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Flachglas Torgau GmbH v. Federal Republic of Germany (European Court of Justice 2 CMLR 17)
Flachglas Torgau requested information about Germany's allocation of emissions licenses during 2005-2007. The requested information was contained in internal documents produced by the Ministry for the Environment concerning legislation process for GHG emissions trading. The Ministry refused this ...
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Fels-Werke GmbH v. Commission of the European Communities (Court of First Instance, 2007)
Applicants sought to annul Commission decision rejecting part of the German Phase II national allocation plan (NAP). The court dismissed the action as inadmissible because the Applicants were not individually affected. The decision as appeal to the European Court of Justice in Case C-503/07, Sain...
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Federal Republic of Germany v. Commission of the European Communities (Court of First Instance, Third Chamber, Extended Composition, 2007)
European Court concluded, inter alia, that while Member States have a degree of freedom in establishing a scheme for greenhouse gas emission allowance trading within the Community, the Commission is authorized to verify that the adopted measures are consistent with Directive 2003/87. Furthermore,...
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European Commission v. Republic of Latvia (European Union Court of Justice, 2013)
Latvia brought an action for annulment of the contested decision of its national allocation plan (NAP) for the 2008-2012 period arguing that the Commission's request for further information was not timely under Art 9.3 Directive 2003/87. The General Court annulled the contested decision, and the ...
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EnBW Energie Baden-Wórttemberg AG v. Commission of the European Communities (Court of First Instance, Third Chamber, 2007)
European Court decision on the implementation of Directive 2003/87/EC establishing the greenhouse gas allowance trading scheme. EnBW (major German energy producer) requested the annulment of the Commission decision of 7 July 2004 on the German National Allocation Plan (NAP). EnBW Energie Baden-Wó...
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Dyckerhoff Polska sp. z o.o. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Drax Power & Others v. Commission of the European Communities (Court of First Instance, 2007)
Applicant contended that the Commission wrongly rejected the United Kingdom national allocation plan (NAP) for a second time following its decision in Case T-178/05, United Kingdom v. Commission, on the grounds that the proposed amendments were notified too late. The court dismissed the applicati...
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Commission of the European Communities v. Finland (European Court of Justice, 2006)
Finland failed to apply in full the EU ETS to the province of Aland. The Commission brought this action under the Article 226 EC procedure, contending that Finland had failed to properly implement the Directive. The Court agreed with the Commission, holding that Finland, by not implementing Direc...
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Commission of the European Communities v. Italian Republic (European Court of Justice, 2006)
Action brought against the Italian Republic by the Commission for its failure to adopt all laws, regulations, and administrative provisions necessary to comply with Directive 2003/87/EC. The court ruled that the Italian Republic had failed to fulfill its obligations under Article 31(1) of the dir...
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Cemex Polska sp. z o.o. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Cementownia "Warta" S.A. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Cementownia "Odra" S.A. v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Buzzi Unicem SpA v. Commission of the European Communities (Court of First Instance, 2008)
Applicant Italian cement producer sought to annual a Commission decision rejecting in part the Italian Phase II national allocation plan (NAP). The court dismissed the action as inadmissible because the Applicant was unable to demonstrate that it was directly and individually affected.
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Bundesrepublik Deutschland v. Nordzucker AG (European Court of Justice, 2015)
Nordzucker AG ("Nordzucker"), a sugar refinery operator in Germany, produced an emissions report for 2005 pursuant to Directive 2003/87/EC, part of the European Union's greenhouse gas emissions trading scheme. Nordzucker's emissions report excluded emissions resulting from steam generation necess...
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BOT Elektrownia Bechatów S.A. & Others v. Commission of the European Communities (Court of First Instance, 2008)
Applicants in the above actions challenged the Commission of the European Communities' decision rejecting the Polish Phase II national allocation plan (NAP) for the allocation of GHG emission allowances. The Court dismissed all actions as inadmissible because the Commission's decision did not dir...
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Borealis Polyolefine GmbH v. Bundesminister (European Court of Justice, 2016)
This European Court of Justice rejected arguments from three industrial firms—one German, one Dutch, and one Italian—that they should be granted a larger number of free greenhouse gas emissions allowances under the European Union's greenhouse gas Emissions Trading Scheme (ETS). The Court also ins...
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Billerud Karlsborg AB v. Naturvardsverket (EU Court of Justice, 2013)
The Swedish environmental protection agency, imposed penalties on the Billerud companies for failing to surrender credits under the EU Emissions Trading Scheme in 2006. The Billerud companies challenged the penalties arguing that since the failure was due to an internal error and the companies ha...
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Arcelor SA v. Parliament and Council (General Court, 2010)
General Court of the European Union dismissed an action brought by Arcelor, a steel producer, challenging the validity of the Emissions Trading Directive. Arcelor claimed that application of certain articles of the directive violated several principles of Community law, including the right of pro...
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U.S. Steel Kosice v. Commission of the European Communities , T-27/07
In Case T-489/04 ("U.S. Steel Kosice I"), applicant U.S. Steel Kosice requested the annulment of a 2006 Commission decision on the Slovak NAP for Phase I of the EU ETS on the grounds that the Slovak Republic had been pressured by the Commission during allegedly non-transparent, bilateral negotiat...
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Poland v. European Parliament, Council of the EU
The European Union’s (EU) Directive 2003/87 established a scheme for greenhouse gas emission allowance trading at the EU level (ETS). As the ETS developed, it had a growing structural imbalance in the supply and demand of allowances, resulting in an excess that could reach around 2 billion allowa...
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Saint-Gobain Glass Deutschland GmbH v European Commission
Saint-Gobain, a company involved in the world glass market, operates installations covered by Directive 2003/87/EC, which established a scheme for greenhouse gas emission allowance trading within the European Community. Saint-Gobain applied to the competent German authorities for the free allocat...
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Evonik Degussa GmbH v Republic of Germany
Evonik Degussa operates a hydrogen production installation; it carries out hydrogenation of rich gas and then processes it as part of a pressure-swing adsorption process, in so doing, separating the hydrogen from other substances contained in the rich gas. By decision of 17 February 2014, the Ger...
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Armando Ferrao Carvalho and Others v. The European Parliament and the Council
Ten families, including children, from Portugal, Germany, France, Italy, Romania, Kenya, Fiji, and the Swedish Sami Youth Association Sáminuorra, brought an action in the EU General Court seeking to compel the EU to take more stringent greenhouse gas (ghg) emissions reductions. Plaintiffs allege ...
