Banking of EUA’s – is the Directive 2003/87/EC properly implemented?
- Category: Emissions trading
Someone wishing to bank emission allowances from second to third trading period can be surprised by the relevant provisions of some national laws of the Member States.
Take for instance the Articles 28 and 29 of the Polish bill on the GHG and other substances emission allowances trading.
The authorization for brokers dealing in CO2 spot markets?
- Category: Emissions trading
The MIFID Directive does not regulate, in general, the legal requirements for spot markets in CO2 emissions allowances. The legal base for such a view is the Article 38 of the Commission Regulation No 1287/2006 of 10 August 2006 (subject to conditions described in detail in the said provision).
On the other hand, taking into account the economic side of the issue, it is often pointed out, that spot trading of EUA, CER and ERU serves, in principle, commercial purposes (and not the speculative ones).
So, in general, in most cases, the commodities spot markets have different, in relation to markets in financial instruments, national legal schemes.
It applies also to Poland, where the Commodity Exchanges Act of 24 October 2000 sets particular requirements as regards CO2 brokers wishing to trade in spot CO2 markets on the Polish Power Exchange.
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?
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.
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.
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 |
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.
An error in the Polish text of the climate legislation
- Category: Emissions trading
In the Polish translation of the Official Journal of the European Union publishing Decision No 406/2009/EC of the European Parliament And of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020 (OJ L 140, 5.6.2009, p. 136.) we found an error in Article 5 paragraph 5.