Know-Your-Customer (KYC) requirements under the California cap-and-trade
- Category: California cap-and-trade
The practical significance of the Know-Your-Customer (KYC) requirements consists in the rule that any individual listed by the registering entity in its registration application in a capacity requiring access to the tracking system must comply with the Know-Your-Customer requirements before access to the tracking system will be granted.
Holding limits under the California cap-and-trade
- Category: California cap-and-trade
The rules on holding limits have been substantially modified in the California scheme as from 1 September 2012. The holding limit legal regime effective from the said date briefly can be summarised as follows.
Loans to emissions-intensive coal-fired generation complexes to purchase future carbon units or to refinance existing loans
- Category: Australia cap-and-trade
The Australian Government has indicated that loans would be available where a coal-fired generator with an emissions intensity exceeding 0.80 tCO2-e/MWh needs finance but is unable to obtain it from the market on reasonable terms.
CFI offsets vs additionality test
- Category: Australia cap-and-trade
Recognising the additionality test may often cause problems for project developers, it is interesting how the Carbon Farming Initiative (CFI) architecture has been streamlined to avoid these risks.
The issue has not only theoretical character since, as an effect of these fundamentals, the Kyoto and non-Kyoto ACCUs are likely to be traded in different markets and at different prices.
How much discount apply on account of invalidation risk of California offsets?
- Category: California cap-and-trade
Every offset has its own woes. Kyoto units suffer from eligibility concerns, California offsets are in turn undergoing the hot debate about the scale of the invalidation risk.
Consolidated account as a means of managing compliance instruments and compliance obligations for entities with a direct corporate relationship under California cap-and-trade
- Category: California cap-and-trade
The compliance obligation for the entities that are part of the consolidation will be summed and assigned to the Consolidated Entity Account (CEA). The operator of the CEA will have the responsibility to meet the combined obligations.
CEA under California program appears to be a modernised and improved version of the unsuccessful institution of pooling regulated in the EU ETS by Article 28 of the Directive 2003/87/EC (which will extinguish with the end of the second trading period on 31 December 2012).
When the change of the heat supplier under EU ETS rules leads to a significant change in the installations capacity, and consequently to a change in allocation of emission permits free of charge
- Category: Implementation
The fundamental change in the rules of the EU ETS as from 2013 consisting in the allocation of free emission allowances to the heat-benchmark sub-installations principally for the consumption of the heat (and for the production thereof in exceptional cases only) necessitates the careful examination of technical connections in the context of the allocation rules.
The importance of the good faith in the free circulation of greenhouse gases emission permits
- Category: Australia cap-and-trade
Emission trading schemes evidently evolve in the direction of attributing the decisive character of the entry in the registry as regards the proof of ownership over emission allowances while retaining the institution of ‘good faith’ as a some sort of ‘safety valve’ for the gross breaches of business honesty.
The Australian program represents the most recent manifestation in that regard.
Heat flows between installations and their influence on free allocation of emission permits
- Category: Implementation
Changes in heat flows between installations made after 30 June 2011 may significantly impact the level of free allocation of permits and, pursuant to the rules governing the EU ETS as from 2013, it may be sometimes effected in quite surprising way.
Capacity reductions in industrial sectors under EU ETS rules as from 2013
- Category: Implementation
Installation's capacity reductions need always be considered in the context of potential EUAs allocation.
Energy efficiency obligation schemes – EU retreats from mandatory provisions
- Category: Energy efficiency
The uniform “white certificates” scheme at the European Union level should not be expected in the foreseeable perspective.
What can be expected in 2013 as regards legislative developments in the energy market
- Category: Energy market
2014 has been politically set as a target for the completion of the European internal market for electricity and gas. It is useful to know the schedule for adopting the main network codes in that regard.