The EU Emissions Trading Scheme (EU ETS) has been transposed into Slovakia's legislation through Act No. 414/2012 Coll. on Emission Trading, as amended. The Act establishes new allocation rules for CO₂ emission allowances for the 2013–2020 period, in compliance with EU rules. Free allocation of allowances is reserved for industrial installations at risk of carbon leakage, while district heat suppliers face a phased reduction in free allowances — from 80% down to 20% over the 2013–2020 period. Electricity producers, by contrast, must obtain all their allowances exclusively through auctioning. The Act also incentivises the use of biomass in the fuel mix of energy installations. The greenhouse gases covered are CO₂, N₂O, and PFCs, and economic and regulatory measures targeting GHG emissions simultaneously yield co-benefits for air quality protection.
The scheme aims to reduce greenhouse gas emissions by 43% by 2030 compared to 2005 levels, and is considered a key pillar for cost-effective emission reductions across industry, energy, and air transport. Proceeds from the auctioning of allowances are directed toward fulfilling environmental targets in the area of climate change and supporting greenhouse gas emission reductions across the national economy.
The Act is composed of 40 articles divided into four sections — General Provisions; Allowance Trading; State Administration; and Transitional and Final Provisions — and regulates: trading in GHG emission allowances between entities registered in Slovakia, the EU, and countries listed in Annex B to the Kyoto Protocol; trading in pollutant emission allowances; the rights and obligations of operators of stationary installations, aircraft operators, and other participants in the trading system; and the competence of state administration bodies in this area.
