CEEP in partnership with European Roundtable on Climate Change and Sustainable Transition (ERCST) has organized a series of workshops in Prague, Bucharest, Warsaw and Sofia dedicated to the new funding mechanisms within the 4th phase of the EU ETS. During the workshops the report Funding Mechanisms in the fourth phase of the EU ETS, exploring what is known and identifying issues for clarification and discussion was presented. The report lays out the components and provide an understanding of the functioning of the different funding mechanisms embedded within the EU ETS, and explore how they are articulated to one another. It also identifies issues that need to be further understood and clarified in terms of the operationalisation of the funding mechanisms which are going to be resolved in the implementation phase. Debates were attended by many representatives of governments, energy and energy intensive industry as well as think-tanks and experts which provided important comments and views on the development of the EU ETS. Participants asked many technical questions on the rules and guidelines for the functioning of funding mechanisms what highlights strong interest of the region in this subject. Participants revealed also some information about the investments they plan to support from the available funds. Modernization Fund and article 10c derogation may play an important role in supporting energy companies in their adaptation to low carbon economy. The key issue at this moment is to adopt its functioning rules in the way which would allow to benefit from it in the most cost effective way. Organization of workshops will be followed by the publication of recommendation concerning efficient use of [...]
Central Europe Energy Partners, as a regional organisation representing companies from the energy and energy-intensive sectors in Central Europe, advocates for a fair energy transition and adoption of legislation which would help to achieve EU climate policy goals by allowing the Central European industry and power generation sector to adjust to the environmental requirements without harming the economic growth. We share and support one of the EU main goals – reduction of CO2 emissions by 2050, this target, however, should reflect the different levels of economic development of the Member States, their international competitiveness and varying approach to energy security. Moreover, we want to underline that reaching EU’s goals require tremendous investments, which for lower income Member States are and will be a significant challenge to cope with. ETS influence on CO2 emissions reduction When ETS was launched back in 2005, it was foreseen that it would lead to 20% decrease of emissions by 2020. This goal was already reached in 2013 (even without using mechanisms such as backloading or Market Stability Reserve and with the low prices of allowances). The EU has further strengthened its position as a world leader, both in decrease of total CO2 emissions (11% of total world emissions) and per capita. It is expected that by 2020, the decrease will reach approximately 26% in the EU. This is due to the functioning of the second and third phase of the ETS which sped up the introduction of applied innovations. Instead of buying additional allowances, small and medium companies should invest in technologies and innovations. CO2 emissions reduction in the perspective 2020-2030 According to the [...]
Henryk Baranowski, the President of the Management Board of PGE (joined CEEP in January 2017) and vice-chairman of the board of directors of CEEP says that strengthening of the EU ETS by increasing the Linear Reduction Factor to at least 2.4% and establishing the intake rate of the Market Stability Reserve up to 24% per year would result in a significant increase of wholesale electricity prices – up to 20% in Poland. It is also a serious challenge for other Member States from Central and Eastern Europe – particularly Bulgaria, Croatia, Estonia, Romania. What do you want to accomplish as a CEEP member? It is clear that international cooperation between companies from our region is essential to find a well-balanced compromise when adopting the EU’s policies. However, despite major common interests (notably the level of the EU ETS ambition, energy import dependency and the need to co-finance the energy transition from EU sources), utilities from Central and Eastern Europe still have much room for improvement in presenting their joint positions in Brussels. It is much easier to promote our interests by working together and speaking with one voice, as opposed to individual actions. It is necessary to identify not only mutual interests but also to find a common platform through which we could communicate with our partners. Therefore, we cannot underestimate the importance of a strengthened regional cooperation. We perceive the membership in CEEP as a great opportunity to present our position to the EU institutions at the highest level. Despite the fact that we have some experience in direct cooperation with other utilities from the region within EURELECTRIC, [...]
The reform of the EU Emissions Trading Scheme (ETS), which is to take place in the next decade, will mean only a deepening of the current problems for the steel sector throughout the European Union. An unrealistic ambition "Ambitious" is a special word for the European Union’s climate policy. Not only due to its declension in the EU’s documents, but also, because it usually stands for "unrealistic". For over 20 years, the EU concept to create the most environmentally-friendly economy in the world has not changed, and assumes that building its position will be based on more and more abstract goals to reduce carbon dioxide emissions. The EU does not see that the global climate summit in Paris restored the two-pillar format, which is the only scientifically legitimate, way of thinking about the protection of the atmosphere. In Paris, it was agreed that the necessary actions would involve both the reduction of emissions, as well as the natural absorption of CO2. Meanwhile, the EU's climate policy obsessively focuses on solutions of the first group. As a result, the pace at which the EU is running for the title of ‘green leader’ turns out to be truly lethal, and European industry becomes its main victim. The British warning The European producers operating in the energy-intensive industries have long since come to terms with the idea that the increase in costs, associated with restrictive climate policy, will not allow them to become global leaders in this industry. The data leaves no illusions: between 1995 and 2015, industrialisation shifted from Europe to the United States and Asia, whilst global emissions increased during [...]
On May the 4th, 2016, CEEP’s CEO spoke at a hearing at the European Parliament, which was devoted to the revision of the 2003/87/EC directive. Mr. Bodio stressed that the new proposal regarding the directive may not change the formula of the Modernisation Fund, by reducing the role of Member States, when it comes to investment decisions in the energy sector. The aim of the works, which are now taking place in the European Commission, is to make the ETS system compliant with the European Council’s conclusions. In October, 2014, heads of governments reached an agreement in relation to the climate and energy policy framework post-2030. The CEO of CEEP reminded the audience at the European Parliament that part of the compromise was the establishment of the Modernisation Fund for those Member States, where GDP per capita does not exceed 60% of the EU average. “The Fund was to be managed by the Beneficiary States, with an advisory – and not decisive – role of the European Investment Bank (EIB). Yet, what we now see on the table goes in a totally opposite direction, with the role of Beneficiary States strictly limited, when compared to the original agreement,” Mr. Bodio stressed. The current proposal from the European Commission provides the EIB and Non-Beneficiary Member States with a decisive role concerning the selection of specific investment projects. This could lead to the blocking of financial support for modern energy technologies, whose only ‘fault’ is making use of coal. According to CEEP’s CEO, “the selection of investment projects should be carried out, taking into account the specificity of the energy mix [...]
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.