Central European Energy Partners together with the European Roundtable on Climate Change and Sustainable Transition (ERCST) organizes a series of workshops on Funding mechanisms in Phase 4 of the EU ETS in four different capitals from Central and Eastern Europe: Prague (21.03), Bucharest (22.03), Sofia (03.04) and Warsaw (05.04).
In the workshops, the project partners will present a paper and the preliminary results from a survey on the process and design of the funding mechanisms, being the Modernisation Fund, Article 10c Derogation and the Innovation Fund. This will be followed by some initial interventions by key national stakeholders and an open discussion with participants. The project partners will provide some guiding questions for the interventions and discussion.
The revision for the fourth phase of EU Emissions Trading System (2021-2030) introduced a number of important changes concerning funding mechanisms in the system. Existing mechanisms – the Solidarity Provision and Article 10c Derogation – were updated, and new instruments – the Modernisation Fund and the Innovation Fund – have been added. However, adoption of the revised ETS Directive was merely a first step; important questions remain to be answered during the implementation phase.
The European Roundtable on Climate Change and Sustainable Transition (ERCST) and Central European Energy Partners (CEEP) are together working on a project that aims to provide room for discussion and capture positions from key stakeholders on the optimal functionality and overall design of these funding mechanisms. In light of this project, a paper was written, taking stock of what is known and highlighting which issues need to be elaborated on during the implementation phase, which was discussed with stakeholders at an event in Brussels in September.
Currently, a survey is being conducted with a very broad group of stakeholders, including representatives from EU Member States, and companies/associations across the Member States. The paper is also being updated to take into account the ongoing developments between September and now.
Although the European Commission has organised its own technical workshops on the funding mechanisms in light of its preparation for the acts establishing the Funds, it is important that independent review and assessment on its optimal functionality and overall design is carried out based on stakeholder input and consultations. Four workshops are being organised in 4 Member State capitals: Bucharest, Prague, Sofia and Warsaw.