The report offers a comprehensive look at our activities during 2021 with four key topics highlighted: fair transition, energy system integration and the role of hydrogen, EU emission trading system and offshore wind energy. "The energy transition is at the heart of the EU energy and climate policies but the ongoing energy crisis has continued from 2021 into 2022 and we are now facing energy prices soaring even further and supply shocks even deeper. These remind us that the EU remains too reliant on the imported fossil fuels while their supply routes are clearly not diversified enough. Energy security, as one of the five dimensions of the EU energy union, should therefore become a first priority, especially in the Central European region which has been seriously affected by supply disruptions of the past, as it experiences them anew in 2022.wrote Mr Leszek Jesień, Chairman of the Board of Directors at CEEP in a message included in the report. Download the CEEP’s 2021 annual [...]
The European Union Emissions Trading System (EU ETS) is one of the main pillars of EU’s climate and energy policy and its revision is crucial to the Fit for 55 Package, adopted by the European Commission (EC) in July 2021. In this paper, ERCST and CEEP provide an overview of the size and functioning of the funding mechanisms which are part of the revised EU ETS and the Fit for 55 Package, i.e., the Social Climate Fund. It also puts forward some recommendations in light of the ongoing legislative process. Finally, it compares the ENVI draft report on the ETS funding mechanisms with the EC proposal providing a summary of the current and upcoming political debate. The Environmental Council will meet on 28th June, aiming to achieve a Council position on the Fit for 55 Package, including the EU ETS Directive, while the European Parliament will vote its position in June. The beginning of trilogue negotiations between Parliament and Council under the supervision of the EC is envisaged for September. Download our report [...]
On December 3, during the 6th Central European Day of Energy, CEEP released a report on the resilience of the Central European power sector in the time of transition, written by REKK. In the report, we focus on resilience in the context of coal phase-out and the rapid development of intermittent solar and wind energy sources. There is no question by now, that coal needs to be phased out, but there are still several options and solutions to fill in the gap in the power production capacity. When and how to replace coal in a cost-efficient way, while keeping system security levels high, remains a key question (not only) in the Central European energy sector transition. According to the modelling natural gas-based capacities will play a key role in providing flexibility in Central Europe in 2030. More natural gas will be needed in the power sector to provide the flexibility required in the future. However, altogether less natural gas-based power generation capacities will be required for that, than what we have in the system now. More than 14 GW of existing coal capacity is to be closed until 2030, which is around 10% of the total net generation capacity installed in Central Europe. Despite the high decrease in coal-based generation in Central Europe by 2030, coal to gas switch will happen only partly – a large share of the “missing” production is to be compensated by renewable producers. The estimated increase of intermittent RES capacity from 29 GW in 2022 to 71 GW in 2030 in Central Europe will require investments in adequate dispatchable and flexible generation, storage capacities, [...]
The report offers a comprehensive look at our activities during 2020 with four key topics highlighted: fair transition, energy system integration and the role of hydrogen, EU emission trading system and offshore wind energy. 2020 was the first year of implementation of the European Green Deal agenda. From the perspective of the energy sector, it was a busy year with numerous public consultations and discussions as well as important decisions taken regarding 2030 emission reduction target and the EU funds. “The energy sector will get ready to deliver, but we have to be very cautious with social costs of this rapid change. Without a strong support from across all EU Member States and all parts of our societies, the EU will not be able to meet its goals, and the world could treat it as an excuse for climate inaction. In order to avoid this, we all have to make sure that the “leave no one behind” theme will guide all EU energy transition instruments. People, not only in Central Europe and Paris, are right to worry about the costs of climate change and energy transition. The best way to deal with these worries is to engage all different stakeholders and run a frank and open discussion about the best mechanisms which would make it easier to bear these costs in a fair way,” wrote Mr Leszek Jesień, Chairman of the Board of Directors at CEEP in a message included in the report. Download the CEEP’s 2020 annual [...]
On 14 July, the European Commission will present its Fit for 55 package that aims to deliver the 2030 climate target of 55%. The package will include 13 policy strands that fundamentally overhaul the EU’s climate policy. It will also include the revision of the EU Emission Trading System. Furthermore, we observe that EU carbon allowance prices hit an all time high and the EU carbon price today hits record high 50 euros a tonne. Based on ERCST and CEEP’s long-standing expertise on the EU ETS, previous work done on the funding mechanisms, engagement and consultations with climate policy experts, policymakers and stakeholders, we propose 7 major recommendations to the use of auctioning revenues and design of the funding mechanisms in light of the review of the EU ETS under the European Green Deal: Ensure auctioning revenues are fully mobilised to for climate and energy purposes. Safeguard the solidarity mechanism from the functioning of the Market Stability Reserve (MSR). Ensure an adequately increased Modernisation Fund. Maintain trust and stability by keeping financing rules for the Modernisation Fund unchanged until the 2024 review. Taking additional factors into account when distributing the modernisation fund among MS. Ensure sufficient revenues are mobilised through the Innovation Fund to finance breakthrough low-carbon technologies. Explore additional financing options to deploy low-carbon technologies at scale through the Innovation Fund. Download the recommendations. Have a nice [...]
CEEP welcomes the possibility to provide feedback to the Commission’s Inception Impact Assessment on the revision of the Ambient Air Quality Directives (AAQD). Clean air is essential for the health of people and the environment. Air quality is a major global, complex issue that needs to be addressed effective with prompt actions and with relevant legislation that allows to cooperate at global, national and regional level across different sectors. Today, the level of air pollutants has exceeded the EU thresholds and is responsible for millions of premature deaths every year. All the pollutants covered by the AAQ Directive have harmful effects and cause breathing difficulties, lung and heart diseases or trigger asthma symptoms. We recommend to reflect on the most recent scientific evidence on the harmful effects of air pollution and align the existing framework with the WHO Guidelines. CEEP acknowledges a need to take actions in order to improve air quality standards and recommends to strengthen air quality monitoring, modelling and plans: The criteria on monitoring and assessing ambient air quality should be coherent with other EU legislation and funding instruments. The EU should make sure that sufficient means are provided for those MSs and regions which will have to make most efforts in implementing the directive, for example through Just Transition Mechanisms. As coal regions will be the most affected throughout the transition, focus should be made to guarantee that they are well equipped with legal and financial instruments to implement the Directive. Coordination, coherence of action taken between different levels of government and a better allocation of responsibilities between the administration at the regional and local [...]
We represent the widely understood Central Europe energy sector (electricity generation, distribution and transmission, renewables, gas, oil, heat generation and distribution, chemical industries, etc.), universities and scientific institutions.
