Directive (EU) 2018/410 amending Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments, and Decision (EU) 2015/1814.

This Directive introduces Emission Trading System by replacing Community scheme. This Directive makes several amendments to the Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Union regarding the coordination with the Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control); transitional measures to support certain energy intensive industries in the event of carbon leakage; option for transitional free allocation for the modernisation of the energy sector; the establishment of the Modernisation Fund to modernise energy systems and improve energy efficiency; validity of allowances; monitoring, reporting and verification for the purpose of the global market-based measure; and the implementation of the Paris Agreement and the development of carbon markets in other major economies. This Directive inserts Articles 22a and 27a to the Directive 2003/87/EC regarding the procedure of the Climate Change Committee and the exclusion of Member States from the EU ETS installations emitting less than 2 500 tonnes. This Directive amends Article 1 of Decision (EU) 2015/1814 regarding the allowances.