The Proposal for new energy efficiency directive – some questions as regards early actions at the level of enterprises
- Category: Energy efficiency
Entrepreneurs who wish to prepare for the implementation of the new energy efficiency directive and become “early movers” or even to establish potential consequences, in particular, costs for adjustment to the prospective provisions, may face some difficulties.
Beneath a few potential dilemmas of crucial importance.
Banking of CO2 allowances operates onwards not backwards
- Category: Auctions of CO2 allowances
The draft Commission Regulation amending Regulation (EU) No 1031/2010 determines the volumes of greenhouse gas emission allowances to be auctioned prior to 2013. But it should be remembered that EUAs sold in early auctions starting in 2012 will be barred from compliance use in the second trading period.
 Annex I - allowances auctioned prior to 2013 and the auctioned product.pdf | [ ] | 12 kB |
Draft REMIT Regulation does not cover EUAs – but for how long?
- Category: Emissions trading
From the systemic point of view there is no reason, why gas would be treated differently, for the purposes of establishing a coherent regulatory regime for the integrity and transparency of the wholesale energy products, than other fuels for the production of the electricity - like coal, oil and even biomass.
The environmental disclosure obligation under EMAS and confidentiality of commercial or industrial data
- Category: Legal Alert
How to reconcile the two values mentioned in the title above? Does the decision to participate in EMAS mean the waiver of the company’s right to protect confidentiality of the environmental commercial or industrial information? Nothing of the kind. The EMAS Regulation contains a clause on this occasion, proposing indexing information against a baseline year.
| Annex IV to the EMAS Regulation - Environmental Reporting | [ ] | 788 kB |
CO2 emission performance standard – UK goes further than IED Directive
- Category: Emissions trading
On the surge of recent criticism as regards poor performance of the EU ETS as a means of emission reductions, EPS is minded as a regulatory backstop which will limit the emissions from new fossil-fired power stations. It has to be taken into account in any power generation business projections – in the UK for now.
Carbon price floor – managed or marketable price for carbon?
- Category: taxation issues
The notion of the ‘carbon price floor’ (fashionable recently) makes at the first glance think of a minimum price for EUAs when traded on the market. And immediately a reservation comes to mind – how could it generally be possible to influence on prices for EUAs by such a rigorous regulatory means when inherent, pivotal component of the EU ETS is a free interaction of the demand and supply? And how could it be made only in UK when emission trading is, as a principle, pan-European? There is also a practical ambiguity, notwithstanding the legal character of the measure at issue, what will be its impact on prices on the European emissions marketplace?
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.
| Annex VIII - Guidelines for siting of thermal electricity installations | [Annex VIII to the Proposal - Guidelines for siting of thermal electricity installations and industrial installations] | 51 kB |
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.