Energy and Climate Report provides current, thorough coverage of clean energy, efficiency, and climate change legislation, regulation, policy, legal developments, and trends in the U.S. and...
By Stephen Gardner
Dec. 23 — The European Commission is soliciting input through March 16, 2015, on the allocation and use of some of the carbon allowances that will be made available to participants in the European Union's emissions trading system after 2020.
In a consultation document published Dec. 19, the commission said comments should be provided on the continued distribution of free carbon allowances to ETS participants and on the diversion of some allowances into funds to provide finance for “low-carbon innovation” and modernization of energy systems in the EU's poorer countries.
EU leaders meeting in an October summit directed the European Commission, the EU's executive arm, to develop proposals on the distribution of free carbon allowances and on the low-carbon funds in preparation for the implementation of the 40 percent greenhouse gas emissions reduction to be achieved by 2030 compared to 1990.
To reach the overall target, participants in the ETS, which covers energy generation, heavy industry and airlines flying between EU airports, should reduce their emissions by 2.2 percent a year after 2020, contributing to a total ETS cut of 43 percent by 2030 compared to 2005, the EC said.
ETS participants are responsible for about 45 percent of the EU's total emissions and are subject to an emissions cap that drops 1.74 percent annually through 2020.
The Dec. 19 commission consultation document said responses would be used in the preparation of legislative proposals that would implement the “strategic guidance given by European leaders.”
The consultation document said comments should be provided on:
• the extent to which carbon allowances should continue to be given for free to ETS participants after 2020;
• the use of 400 million allowances to create a fund for renewable energy and carbon sequestration projects; and
• the use of 2 percent of allowances to finance energy efficiency and energy system upgrades in poorer EU countries.
In addition, the consultation document asked for general comments on the effectiveness of the ETS and if its costs were “proportionate.”
Under the current phase of the ETS, most carbon allowances are supposed to be distributed to participants through auctions held by EU member states. In practice, however, a large proportion of allowances continues to be given to participants for free, because of concerns the extra cost of allowances would put EU industry at a disadvantage compared to its international competitors. ETS participants with emissions that exceed their carbon caps must buy additional allowances on the carbon market.
To contact the reporter on this story: Stephen Gardner in Brussels at email@example.com
To contact the editor responsible for this story: Greg Henderson at firstname.lastname@example.org
The European Commission consultation on revision of the EU emissions trading system is available at http://bit.ly/1zu4rXv.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)