Emissions trading in the Netherlands

Emissions trading is a flexible policy instrument which the Dutch government is using to improve the living environment. In the Netherlands there are two emissions trading systems, one for emissions of carbon dioxide (CO₂) and one for emissions of nitrogen oxides (NO_x).

Characteristics of emissions trading in the Netherlands

1. An emission permit: obligatory participants draw up a monitoring protocol that they then submit for approval to the NEa. In the event of approval, the director of the NEa issues the company with an emission permit.
2. Receiving emission allowances: licensed companies are allocated emission allowances by the government.
3. Monitoring: during the emissions year companies monitor their emissions in accordance with a monitoring protocol. 
4. Verified emission report: at the end of an emissions year, companies with an emission permit report their emissions to the NEa in an emission report. They have this report checked by a verifier. 
5. Turning in of emission allowances: companies compensate the quota laid down in the emission report by turning in emission allowances to the registry. 
6. The supervisor: in the Netherlands, the NEa supervises these two systems.