Why importers of electricity into EU don’t have compliance obligation under EUETS?
- Category: Emissions trading
It is common knowledge that power producers in many countries outside the EU are not facing carbon constraints similar to those present under European Union Emissions Trading Scheme.
As a consequence, there are, however, investors that consider building power facilities outside the EU and importing electricity (provided technical and regulatory requirements allow). It seems that such a situation may be perceived as a regulatory gap that should be eliminated as quick as possible in order to avoid undermining the objectives of the revised EU ETS Directive.
Mysterious allocation to the heat benchmark sub-installations being new entrants
- Category: Implementation
The unknown capacity utilisation factor (differing across Member States), the first come, first served rule as regards allocation from the new entrants reserve and the flexible grounds for the rejection by the European Commission of the preliminary total annual amount of emission allowances submitted by the Member States – all these circumstances cause that the potential investors have no legal certainty how to valuate the relevant factors and have to assess in their projections the risks stemming from this fact.
Energy efficiency obligation scheme according to the Proposal for new energy efficiency directive – first impressions
- Category: Energy efficiency
Must obligated entities finance (and, potentially, to what extent) energy savings among their final customers in order to be able to count these savings towards their obligation?
The Proposal for new energy efficiency directive – mandatory requirements for electricity generation installations
- Category: Energy efficiency
Under the influence of the general impression of non-obligatory character of the draft provisions there shouldn’t be omitted some parts of the proposal, which impose rigorous requirements on new and existing electricity generation installations. Moreover, they are formulated in a strict manner and potentially would have significant effect on electricity generation capacities in Europe.
The possibility for freezing allowances and accounts – important change to the registry system
- Category: Emissions trading
The possibility “for freezing allowances and accounts” is specified in more detail in Articles 70, 71 and 73 of the Commission’s proposal for the Registry Regulation amendment and amounts to three differing legal measures with distinct premises, effects and entities authorised to use them, i.e.:
- suspension of all access by authorised representatives,
- suspension of access to allowances or Kyoto units,
- suspension of processes.
Exclusion of small installations and hospitals from EU ETS – time for conclusive decisions
- Category: Implementation
Article 27 of the Directive 2003/87/EC (as amended by the Directive 2009/29/EC) allows for the exclusion of small installations (subject to equivalent measures) from EUETS.
These small installations will have a chance to avoid administrative burdens and costs (resulting from the participation in the scheme) only, if governments act quickly. 30 September 2011 is a key deadline in that matter.
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