Central and Eastern Europe needs to diversify the gas supply sources, not only the routes

Diversifying the gas supplies to Central and Eastern Europe, not only by its routes, but by the sources of supply will allow the creation of a real gas market, with free competition between suppliers and freedom of choice for customers. In the light of this, the decision of the European Commission allowing Gazprom increased access to the capacity of the OPAL pipeline, as well the pursue of the Nord Stream 2 project are contrary to the Energy Union principles and detrimental to the region. These are the key messages discussed during the first edition of Central European Day of Energy, in Brussels. All European projects, according to the Energy Union rules, should increase energy security, solidarity and trust. They also have to comply with the European common rules concerning third party access and competition policy, hence without posing a threat of disruption on existing routes. The gas infrastructure in CEE is still mainly East-West oriented. Therefore, one of the main priorities for the region is the implementation of the North-South gas corridor, a key enabler for breaking the Central Europe’s dependence upon Russian gas. The North–South Corridor comprises a set of interrelated energy infrastructure projects, which would connect Central European markets, both with each other, and with the Western part of the continent. This will be the backbone of Central Europe’s energy infrastructure and will further enhance the region’s energy security. The European Commission’s Vice-President in charge of Energy Union, Maroš Šefčovič, reminded that “2016 will be remembered as a highly turbulent year, a turning point between the old and the new energy systems. With the just released “Clean [...]
Bratislava Memorandum: CEEP members ask for a fair energy transition

Bratislava Memorandum: CEEP members ask for a fair energy transition

CEEP members are urging 100% free EUAs for energy-intensive industries, such as chemicals, fertilizers, refineries, and steel, until 2030, as well as a 100% derogation for power plants that use new technologies with a 43% energy efficiency (lignite) and 45% (coal). Moreover, they request the strengthening of the beneficiary Member States’ con-trol over the Modernisation Fund, and ask for the right to give subsidies to indigenous fossil fuels, to the extent decided by each Member State. These are the main recom-mendations of the ‘29+1’ Annual Energy Summit, organised by Central Europe Energy Partners (CEEP), in co-operation with GLOBSEC, on October the 27th–28th, in Bratislava. CEEP members – who comprise Central Europe’s leading energy and energy-intensive companies – entered into a comprehensive dialogue with the European Commission’s Vice-President in charge of Energy Union, Maroš Šefčovič, only weeks before the publication date of the European Commis-sion’s legislative ’Energy Union Package’. In this context, they underlined that the security of supply in the electricity sector should take into account different electricity mixes across the EU Member State and it should also address the power availability for trade and market transactions. “The new proposed target of 15% of electricity interconnections for 2030 should be thoroughly analysed as it can negatively affect the electricity markets in Central Europe, given their limited ability to transport the unscheduled loop flows that prohibit proper market exchanges. This can substantially influence the flows of energy in the Member States making the whole system unstable” said Eryk Kłossowski, Chairman of the Board of Directors of Central Europe Energy Partners. The Bratislava Memorandum, which was handed to Commissioner Šefčovič on [...]
CEEP: The European fertilizer sector seriously endangered by the EU Emissions Trading System

CEEP: The European fertilizer sector seriously endangered by the EU Emissions Trading System

The European Commission is working on a revision of the EU emissions trading system for the period after 2020. Central Europe Energy Partners (CEEP) and Fertilizers Europe call for a better targeting on those sectors that are most exposed to carbon leakage risk, so they can continue to increase production and jobs in Europe. The emissions trading system (ETS) is the EU’s main tool to address climate change and reach its target of a 40% reduction of carbon emissions by 2030. The system is widely criticised by the industry, as paying for emission allowances makes them lower their global competitiveness. Yet, some emissions are allocated for free to those industries, which otherwise could move their production out of Europe to countries or regions with less ambitious climate measures. “The risk of carbon leakage varies greatly between different sectors, and the fertilizer industry is one of the most exposed to that threat. We see at least 100,000 jobs, concerning this industry, in the whole European Union seriously endangered by the process of carbon and investment leakage, which, in turn, are generated by the ETS mechanisms,” said Marcin Bodio, CEO of CEEP, at a debate on the ETS reforms, which was organised in the European Parliament. “This industry plays the important role in the EU’s economic growth and its food security, as half of the food consumed today can be produced due to the use of fertilizers. CEEP, alongside other industry organisations, such as Fertilizers Europe, points out that, as a result of specific technological situations, a proper targeting or differentiation of the ETS system is highly needed. “As two-thirds of [...]

PRESS RELEASE: CEEP calls to the European Commission for reforms of the Emissions Trading Scheme (ETS)

The EU emissions trading scheme (ETS) puts thousands of jobs in the steel, chemical, fertilizer, and refining sectors at serious risk. Europe is losing its global competitiveness, when compared to other industrialised countries, as well as emerging powers. That is why Central Europe Energy Partners (CEEP) has called upon the European Commission to reform the ETS system, in a way that will safeguard the development of industry and prevent its exodus from the European Union. CEEP represents both the energy and energy-intensive sectors from Central Europe in international forums, and in doing so, has presented to the European Commission proposals of changes in the European emissions trading regulations. According to CEEP’s data, in 2030, an average EU citizen is going to produce only 5 tonnes of emissions, whilst in the United States this level will reach 12 tonnes. “We want to see an ambitious climate policy in the European Union, but this policy must be economically realistic. The current emissions trading system is especially destructive for Central Europe, which – as a result – is not able to advance economically and catch up with the western part of the continent. If the CO2 emission prices are increased, we will experience a further drop in the competitiveness of our industry and an even greater economic division within the European Union,” Marcin Bodio, CEO of CEEP, underlined. CEEP experts argue that the ETS system not only has failed to reduce emissions, but also has stopped many investments, aimed at raising the efficiency of coal power plants. That is why there is no reason to further increase the prices of CO2 allowances. [...]

PRESS RELEASE: EU’s winter package is a chance to boost energy infrastructure and raise the level of LNG supplies in Europe

The European Commission presented, on Tuesday, a proposal of new regulations aiming to strengthen the EU’s energy security. Brussels wants to put more emphasis on the development of energy infrastructure, based on a policy that is co-ordinated at both the EU and regional levels. Experts from Central Europe Energy Partners (CEEP) argue that it is a step in the right direction. The new regulations have been designed to safeguard the security of gas and electricity supply, map out the strategy for LNG supply and storage, strengthen the position of EU institutions in the process of negotiating gas contracts for the Member States, and define challenges related to heating and cooling. According to Marcin Bodio, Chief Executive Officer of CEEP, the ‘winter package’ should be seen as a reaction to macroeconomic and geopolitical challenges that the European Union is facing these days. The EU is responding to these challenges by enhancing its internal market, diversifying the supplies of strategic resources, especially liquefied natural gas, and increasing the transparency in trade relationships between suppliers and consumers of energy resources. “The package of new regulations is a step in the right direction. The key thing that these documents recognise is the role of transmission infrastructure – i.e. terminals, gas and oil pipelines, as well as systems for the transmission of electricity – in the process of creating a common market. This is especially important when considering the new strategy for LNG supply and storage. CEEP has been calling for the EU to adopt such a document. The common goal of the EU institutions and industry organisations, such as CEEP, is to allow [...]
Zbigniew Brzezinski, Jerzy Buzek and James Jones are the honorary members of CEEP

Zbigniew Brzezinski, Jerzy Buzek and James Jones are the honorary members of CEEP

Zbigniew Brzezinski, Jerzy Buzek and James Jones have become honorary members of Central Europe Energy Partners (CEEP). The organisation has, therefore, gained powerful allies in its campaign to enhance the energy security of the European Union. CEEP represents the Central European energy sector and energy-intensive industry in international forums. “We bring producers and consumers of energy together, in order to speak in Brussels with ‘one voice’. We can make this voice stronger, due to the knowledge and experience of the Honorary Members, who have joined CEEP to form its Advisory Board. By combining our forces, we stand a real chance of infrastructurally integrating the whole of Europe, diversifying its energy markets, and enhancing our industry’s competitiveness. I am proud to work on making this vision happen with such dedicated experts on strategic security and economic analyses,” declared Paweł Olechnowicz, Chairman of the Board of Directors of CEEP. Zbigniew Brzezinski is a US-based political scientist and geostrategist who served in the Policy Planning Office of the State Department under President Lyndon B. Johnson, and as the head of the National Security Council for President Jimmy Carter. “Energy security is a key factor in the process of strengthening peace and prosperity in Europe, particularly Central Europe. As an independent industry body, CEEP already plays a central role in assisting the EU in diversifying its energy sources away from an over-dependence upon monopoly oil and gas suppliers. This role needs to be vigorously supported, which is the reason I decided to join the organisation as its honorary member,” Mr. Brzezinski proclaimed. According to Prof. Jerzy Buzek – Prime Minister of Poland in [...]