The new SO2 i NOx emissions market in Poland – some issues are controversial
- Category: Emissions trading
Poland is preparing a new system of emission trading of sulphur dioxides (SO2) and nitrous oxides (NOx).
According to the draft of the new statute, financial institutions won’t be admitted to the market (as well as traders and brokers).
But why the new law restricts the emissions market also as regards the range of possible types of civil contracts?
Current provisions for VAT treatment of CO2 transfers in the EU
- Category: taxation issues
What is current situation in the European Union as regards VAT taxation of transfers of CO2 allowances? The answer is complex.
It should be noted, that four different approaches are being taken across European Union in that matter now.
In the most of EU countries nothing have changed up to now, in some (like United Kingdom, France and Netherlands) in June and July this year were introduced (unilaterally) new measures (different in each of them) and the European Commission also proposes something new – temporary measure in the VAT Directive.
There is of course also a differentiation in VAT treatment of domestic and cross-border transactions.
 Current provisions for VAT treatment of CO2 transfers in the EU.pdf | [ ] | 89 kB |
Banking and borrowing under EU ETS and Boxer Kerry US draft of the new legislation
- Category: Emissions trading
Both of the above possibilities are admissible in the EU and US schemes.
Additionally, Boxer Kerry provides for an interesting solution: “borrowing with interest”.
EUAs and CERs as a security
- Category: Emissions trading
According to the circular of the ICE Clear Europe published in September 2009, the clearing house extended the list of permitted cover and included Emissions Allowances issued under the EU Emissions Trading Scheme (EUAs) and the Kyoto Protocol (CERs).
Clearing Members may now use Allowances or CERs to satisfy original margin requirements. In order to bring a margin, EUAs or CERs should be deposited with a special account of ICE Clear Europe.
So, this proposition and concept presented by the clearing house bases on fiduciary assignment of allowances. It is probably because the other forms of a hypothecation in relation to CO2 allowances are still questionable.
The landscape after the judgment – prognosis of legal effects and further scenarios
- Category: Judgments of the European Court of Justice
It seems unbelievable, that in the construction of the European Emission Trading Scheme occurred such a glaring and - potentially burdened with severe consequences – error in law.
Let’s analyze possible future legal scenarios, that are evoked with the judgment of the Court of First Instance of 23 September
Why can’t new investments in Polish power generators benefit from derogation laid down in Article 10c of the Directive EU ETS
- Category: Emissions trading
There is a threat, that new investments of Polish power generators can’t benefit from derogation provided for in Article 10c of the Directive 2003/87/WE – contrary to intentions, which were expressed by politicians and negotiators during December 2008 negotiations of climate - energy package.
| Why can’t new investments in Polish power generators benefit from derogation | [Anaysis of Article 10c of the Directive EU ETS] | 68 kB |
Polish emission trading bill – unfortunately with many mistakes
- Category: Emissions trading
Polish national implementation measure – the bill of 22 December 2004 of a greenhouse gas and other substances emission trading addresses contract of sale as an only one, that can be applied in relation to a disposal of emission allowances.
It is a classical mistake of legislators.
First opinions in the European Commission’s consultation on the auctioning
- Category: Legal Alert
We remind, that it is now running the period for submission to the European Commission of opinions and remarks in respect of the future shape of the auctioning system.
Their opinions expressed inter alia the Danish Energy Association and the the Association of the Austrian Electricity Companies.
According to both opinions, a single-round sealed-bid auction is the most appropriate auction format for auctioning EU allowances. In the views of the stakeholders, the most appropriate pricing rule for the auctioning of EU allowances is uniform-pricing.
Rationale for this is the view that such a formula gives a clear price signal for the value of an EUA, thereby increasing predictability. It also ensures that every successful participant pays the same price, meaning that the auction price will be fair and minimises the risk of distorting the secondary market.
Both organisations also consider, that the rule for solving ties in the future Regulation should be pro-rata re-scaling of bids.
The opinions of both stakeholders are also consistent in that there should no reserve price apply.
Polish national and sectoral plans of emissions reduction – is this risk manageable?
- Category: Emissions trading
On the 19 of June 2009 the lower house of the Polish Parliament (Sejm) has adopted the bill on the management system of GHG emissions and other substances.
The bill provides inter alia for legal framework for national and sectoral plans of emissions reduction.
During the course of the legislatory proceedings the main controversy was the position of forests as a sinks of a carbon.
But, paradoxically, the legal basis for national and sectoral plans of emissions reduction evoke no questions or discussions. This is surprising, because these plans are actually real threat for Polish companies and entrepreneurs.
| Polish national and sectoral plans of emissions reduction | [ ] | 76 kB |
Thirty days for a withdrawal of the petition to declare bankruptcy - an Event of Default in the IETA Master Agreement
- Category: IETA Agreements - Commentary
Under the point 12.2 (d) (iv) of the IETA Master Agreement (Emissions Trading Master Agreement for the EU Scheme version 3.0) a party to the IETA agreement has only 30 days to cause the withdrawal of the petition to declare bankruptcy, filed to the court with respect to it. If it fails to do so, the other party of the IETA agreement is entitled to terminate the agreement as a consequence of an Event of Default.
Taking into account, that in some countries of the European Union judicial procedures are not so efficient and the period of 30 days is far too short to do anything in this respect, it may be the considerable risk . Let’s see, how it is working on the Polish market.
| Thirty days for a withdrawal of the petition to declare bankruptcy.pdf | [ ] | 50 kB |
An error in the definition of Delivering Party’s Replacement Cost (Emissions Trading Master Agreement for the EU Scheme version 3.0)?
- Category: IETA Agreements - Commentary
It seems to be an error in the definition of Delivering Party’s Replacement Cost in the Emissions Trading Master Agreement for the EU Scheme version 3.0.
The method of accruing interest under the IETA Master Agreement and the Polish Civil Code
- Category: Emissions trading
The method for accruing interest under the Emissions Trading Master Agreement for the EU Scheme Version 3.0 2008 can evoke some problems and be a little embarrassing for a companies operating on a Polish market. We point at some possible solutions.