CEEP and FuelsEurope workshop dedicated to the EU ETS Reform

CEEP and FuelsEurope workshop dedicated to the EU ETS Reform

On the 22nd of April, thanks to the courtesy of the Chairman of the ITRE Committee, Mr. Jerzy Buzek, CEEP and FuelsEurope had an opportunity, in the premises of the European Parliament, to organise a workshop dedicated to the European Union’s Emissions Trading System (ETS) Reform. The meeting was directed especially at the Assistants and Advisors to the Members of the European Parliament. During the meeting, CEEP and FuelsEurope were able to express their opinions regarding ETS reform. As for industry, this issue has become one of the key proposals being now discussed. So, both organisers decided to focus on the – Myths and Reality behind the ETS system, in order to explain its actual position within the European Union’s Climate policy. The event was moderated together, by Mr. Alessandro Bartelloni, Policy Director, FuelsEurope, and Jakub Przyborowicz, Co-ordinator, European Institutions’ Affairs, CEEP.  After they explained to the audience who they represent, and gave some background as to the type of interest group they constitute, they then outlined the positions of both organisations in the current discussions and policies regarding the future formula and shape of the Energy Union. Mr. Bogdan Janicki, Senior Adviser, CEEP, delivered the core presentation, commenting on the EU ETS reforms from the Central European point of view.  Many questions were raised regarding differences between the EU-17 and EU-11 Member States. At the heart of his presentation was the issue of counting CO2 emissions per capita, which gives the real state of play within European Climate policy, and a fairer understanding of ETS as such. He underlined that concept of CO2 storage by forests, should be [...]
Central Europe Energy Partners’  Position Paper on ETS reform  (Directive 2003/87/EC)

Central Europe Energy Partners’ Position Paper on ETS reform (Directive 2003/87/EC)

1. Introduction The Paris Agreement has shown that the EU’s proposal to decrease CO2 emissions by 40% by 2030, from 1990 levels, was the most ambitious pledge made at the Summit. This means that the other industrialised countries, such as the US, Canada and Australia, are lagging behind the EU’s ambitions, as well as the emerging powers, notably China and India. If we translate the pledges into emissions per tonne per capita, then in 2030, we can expect below 5.0 tonnes in the EU, whilst in the US nearly 12 tonnes. Why should we be so ambitious and accept a constant loss of competitiveness and not fulfill one of the basic principles of the Lisbon Treaty, which states, that the EU should implement policies ensuring advances in economic integration? As Eurostat shows, the distance between the EU-15 and EU-11 (GDP per capita), has practically not changed during the last 10 years. As figures indicate , a 1% increase of GDP per capita in the EU-15 is equal to 3.1 % in the EU-11. If the ratio is 1% to 4%, the chance to catch-up will take 40 years. This is our real European problem requiring immediate attention, as new investments are desperately needed in the EU-11. The revision of the EU Emissions Trading Scheme (ETS) is highly important for the Central European energy-intensive industries ( steel, chemical, refining, etc) and crucial in determining how the EU aims to combine its agenda on growth, jobs and investments with climate and environmental policies. For example, in its current form, the proposal puts at risk the viability of the steel industry in [...]
COP-21: Central Europe satisfied with Paris results

COP-21: Central Europe satisfied with Paris results

The COP-21 climate summit in Paris resulted in an important and fair compromise. All references to decarbonisation were removed from the landmark deal. Instead, a clause on protecting forests was included. This powerful contribution from the Polish delegation proves that climate and economic goals may be achieved, if based on a reasonable balance between carbon output and emission absorption. Central European states delegations made considerable and widely appreciated impact on COP-21 proceedings. That refers particularly to Poland - the region’s largest player. Prime Minister Beata Szydło and Jan Szyszko Minister for Environment arrived in Paris well-armed with facts and figures and willing to defend its energy sector and energy-intensive industry. The two strategic aims were clearly defined. The first one was to reach a truly global, rather than regional agreement. It was obvious that failure to work out a universal compromise would be dangerous for the European Union. Although EU member states are responsible for only 11% of worldwide greenhouse gas emissions, they take the lead in their reduction. It is a heavy burden which results in the competitiveness of the European economy continuously falling. [Tweet "It is the transparency of data that Central Europe Energy Partners has been calling for ahead of COP-21"]The other goal was to make sure that, general as the final agreement should be, it would allow each nation to protect its specific interests. This was not a question of a symbolic gesture, but a factor that may have a fundamental meaning for defining individual environmental burdens and policies in the forthcoming years. This is especially important, as in the past decade, the global debate [...]
CEEP: Climate agreement an opportunity to review Europe’s emission trading system

CEEP: Climate agreement an opportunity to review Europe’s emission trading system

The COP 21 climate conference in Paris was concluded by the adoption of an international agreement. The aim of the document, signed by close to 200 countries, is to reduce the increase in the global temperature, by below two degrees Celsius over the pre-industrial level. According to experts from Central Europe Energy Partners (CEEP), the concept of an emissions trading system (ETS), adopted by the European Union, has not been backed by other countries. This indicates how important it is for the EU to review the entire system. The fact that the adopted agreement has a global reach is undoubtedly an important achievement in the ongoing combat against climate change. It is also a major commitment. According to Marcin Bodio, the CEO of CEEP, the results of the Paris summit will need to be evaluated at the global, not regional level. „We need time to adopt the provisions of the agreement, and subsequently, launch the process of their implementation. The next climate conference, scheduled for 2023, will be a good opportunity to review the progress made. This date seems quite distant, but, when you take into consideration the perspective of average investment processes in the energy sector and energy-intensive industries, there is not that much time left,” Mr. Bodio observed. Another major achievement of the Paris summit is how it helped to raise awareness of climate change at the global level. „In the course of the entire conference, we witnessed vigorous discussions which spurred various schemes and plans to reduce the increase of global temperatures. The most ambitious position was taken by the European Union, which, not only advocated [...]

Proposed Summer Package detrimental for Central European countries?

On the 15th of July, the European Commission published its ‘Summer Package of Proposals’ - an attempt to transpose the goals set out in the 2030 Climate and Energy Policy Framework brought to light during the European Council Summit in Brussels, in October, 2014. Its most vital part is the proposal for a revision of the EU’s Emissions Trading System. Following the back-loading regulations, finalised at the end of 2013, and after the adoption of the Market Stability Reserve (MSR), it represents the last piece of the puzzle to reform the ETS, and ensure its seamless functioning after the year, 2020. Introduced back in 2005, the scheme operates as a ‘cap-and-trade’ system, setting a limit to the maximum amount of the greenhouse gases that can be released into the atmosphere. As of 2013, it covered more than 12,000 installations, collectively responsible for approximately 45% of EU-wide emissions. Summarising the motions included in the new proposal, it advocates for: An increase in the number of allowances withdrawn from the Emission Trading Scheme from 1.74 % to 2% a year New rules for inclusion in the carbon leakage list, translating into a much shorter list. A more targeted benchmark system updated twice during the trading period, with a 1% flat rate of emissions decline imposed annually. A new funding scheme to promote innovation A new Modernisation Fund for low-income Member States providing compensation for the modernisation of their energy and energy-intensive industries. Although the proposition may look as though it touches some of the right notes - addressing the risk of exodus of industrial plants out of Europe, providing funding for [...]