Clearing thresholds calculating under EMIR draft Regulation and ESMA Draft Technical Standards
- Category: EMIR
When one of the clearing thresholds for an asset class is reached as determined in EMIR, the counterparty is considered as exceeding the clearing thresholds and therefore is subject to the relevant EMIR requirement for all classes of OTC derivative contracts and not only for those pertaining to the class of OTC derivatives where the clearing threshold is exceeded.
But how is the counterparty trading with the non-financial participant (NFC) going to be made aware that the NFC has or has not yet exceeded the clearing threshold?
European Single Electricity Balancing Market - state of play
- Category: Energy market
Assuming Framework Guidelines become binding law, and the fact intermittent generation as the PV or wind sources have very low variable costs, it is probable in the future Single Electricity Market baseload fossil-fueled generation like coal and gas will gradually be squeezed out from providing balancing services.
Investment outlays engaged in these sources will probably be recovered over longer periods due to contained periods of operation of these units on the electricity balancing market. In such a situation it appears more and more questionable, whether the investors decide to engage in new sources of fossil-fuel generation.
ENTSO-E however engages in a dispute with the European energy regulator ACER over the content of the Framework Guidelines.
Materiality Standard under the CDM
- Category: CER, ERU
Decision 9/CMP.7 taken in Durban requested the Executive Board to implement the concept of materiality in the Clean Development Mechanisms.
Australian Carbon Register – how Australian financial market participants accommodate to legislative developments considering emission units as financial products
- Category: Australia cap-and-trade
From 1 July 2012 emissions units recognised under the Australian carbon pricing mechanism will be financial products under the Australian Corporations Act 2001. It means that carbon brokers and other intermediaries will need to examine whether they must hold an Australian financial services licence to be able to provide financial advice about, or deal in, carbon credits.
This regulatory switch precedes the EU MiFID II/MiFIR reform under EU legal framework and may be a training ground for European institutions.
Recycling and highest value-added and resource-efficient products favoured over bioenergy
- Category: Implementation
Another regulatory switch? Are biomass power plants in jeopardy?
Further developments as regards carbon markets position limits
- Category: Emissions trading
The position limits will be counted in California for each future vintage separately – according to the draft law. Also under the Australian framework the controlling corporation of a group must notify the Clean Energy Regulator if the group has a significant holding of carbon units.
State aid rules regarding carbon leakage sectors adopted - more flexibility for production planning
- Category: Implementation
Unlike the previous versions of the Guidelines, in the final text the 40% threshold for the production increases and decreases in the definitions for baseline output and baseline electricity consumption, is not relevant.
In effect of the changes made in that regard, the installations will have greater flexibility in planning production without being restricted with stiff and cut-off 40% threshold.
What is resource shuffling and why it can cause problems
- Category: Emissions trading
The prohibition against resource shuffling is not currently introduced in EU ETS climate legislation. But for how long?
Push-Push-Pull – new proposition to improve the registries safety
- Category: Emissions trading
How many authorisations are necessary to make emissions allowances transfer request fraud-resistant and, concurrently, non-bureaucratic?
First Deliverers of Electricity as covered entities under California cap-and-trade – a few remarks on equal treatment
- Category: Emissions trading
All first deliverers of the electricity in the EU must be treated equally, whether they are in-Union generators or electricity importers.
Eligibility for international emission units under Australia cap-and-trade – hedging exercise for large emitters' risk management structures
- Category: Australia cap-and-trade
How to effectively hedge in the Australian carbon market for 2015? Considering the first domestic permit auction is planned for late 2014, assessing the possibilities and profitability for contracting international units seems to be crucial.
Draft Regulation on central securities depositories – relation with the emission market
- Category: Emissions trading
The new framework for central securities depositories (CSD) provides for the rule that without prejudice to the corporate law under which the securities are constituted, an issuer will have the right to arrange for its securities to be recorded in any CSD established in any Member State. A CSD conducting business in different jurisdictions is obliged, however, to identify and mitigate the risks arising from any potential conflicts of laws across jurisdictions.