The new legislation is intended to meet the EU's 2020 climate
goals to reduce greenhouse-gas emissions by 20% below 1990
levels and boost the share of renewables in the total energy mix
to 20% by the same date. The 'package' is composed of six
measures. The revision of the EU's flagship emissions trading
scheme will enter into force in 2013, obliging power
installations to buy all their emissions allowances at auction
to correct the deficiencies of the previous scheme, in which
free allocations resulted in massive windfall profits (see
EurActiv LinksDossier). For other ETS sectors, auctioning will
be gradually phased in, with 20% of emissions permits bought at
auction by 2013 and 70% by 2020. Full auctioning will not kick
in before 2027. Moreover, member states with significant coal-
based production negotiated substantial derogations to their
industries that are deemed to be at risk of 'carbon leakage',
that is, reallocation to third countries where environmental
protection laws are less strict (EurActiv 21/1