The funds, which can be used in combination with other public funding sources, will contribute to the transition to a climate-neutral economy by 2050, and will be evaluated against five criteria, including greenhouse gas emission avoidance, degree of innovation, project maturity, scalability, and cost efficiency.
The Innovation Fund , implemented by the European Climate, Infrastructure and Environment Executive Agency (CINEA), aims to support industrial solutions to decarbonize Europe and support its transition to climate neutrality. The Fund will allocate roughly €38 billion from the auctioning of allowances under the EU Emissions Trading system (EU ETS) the period 2020-2030, subject to the carbon prices. (Source: EC, Website PR, April, 2022) Contact: EC, ec.europa.eu
More Low-Carbon Energy News EU ETS, Carbon Emissions, European Commission,
The report looked at the societal impacts and consequences of light duty fleet electrification on access to passenger vehicles for EU citizens. The study compared the cost-of-ownership of similar battery electric vehicle (BEV) and internal combustion engine vehicle (ICEV) models in 16 EU Member States.
The research illustrates that by betting almost exclusively on electrification of the auto fleet as a decarbonisation solution -- the direction favored in the European Commission's "Fit for 55" package -- the EU risks greatly increasing the cost of vehicle ownership and thus potentially shutting out large sectors of the population.
The study found that BEVs reached price parity with ICEVs in many countries mostly due to advantageous subsidy schemes which create in return an increasing cost burden on governments. Still, with Europeans buying mainly second-hand car vehicles, the penetration of BEVs remained low. Without subsidies and without access to low-carbon electricity, the electric vehicle is the least favourable abatement option, saving less GHG emissions than alternative fuels and increasing the cost of ownership for drivers, the study notes.
In France, E85 is already the most cost-effective low-carbon mobility option, saving emissions at a lower cost of ownership compared to conventional petrol and electric cars. A subsidy system rewarding different options based on their full life-cycle GHG-reduction potential would level the playing field between low-carbon solutions to maintain choice and attractiveness for consumers.
The study concluded that higher volumes of renewable fuels will be needed in the road sector following the new higher targets set in the revision of RED II and the potential creation of a dedicated ETS for road transport.
Renewable fuels are a complementary option to battery electric vehicles and can help drive faster decarbonisation of transport while benefiting the EU economy, industry and society, the report concludes. (Source: ePURE, Website 2 Feb., 2022) Contact: ePURE , www.epure.org
More Low-Carbon Energy News Fit for 55, PURE, Ethanol, Carbon Emissions, Decarbonization, EU ETS,
A total of 2,162 power companies included in the country's carbon market produced an estimated 4.5 billion tonnes of carbon dioxide emissions in 2021, according to the Ministry data.
In creating a national ETS, China began piloting emissions trading at the regional level in 2011, covering seven provinces and cities including Beijing, Shanghai and Guangdong. As previously reported, China aims to bring its carbon emissions to a peak before 2030 and become carbon neutral before 2060.
Besides the EU ETS and China, national or sub-national systems are already operating or under development in Canada, Japan, New Zealand, South Korea, Switzerland and the United States. (Source: China Ministry of Ecology and Environment, CGTN, 5 Jan, 2022) Contact: China Ministry of Ecology and Environment, www. english.mee.gov.cn
More Low-Carbon Energy News China Carbon Market, EU ETS, Carbon missions, Climate Change,
"There are several paths governments can take to price carbon, all leading to the same result. They begin to capture what are known as the external costs of carbon emissions -- costs that the public pays for in other ways, such as damage to crops and health care costs from heat waves and droughts or to property from flooding and sea level rise -- and tie them to their sources through a price on carbon.
"A price on carbon helps shift the burden for the damage back to those who are responsible for it, and who can reduce it. Instead of dictating who should reduce emissions where and how, a carbon price gives an economic signal and polluters decide for themselves whether to discontinue their polluting activity, reduce emissions, or continue polluting and pay for it. In this way, the overall environmental goal is achieved in the most flexible and least-cost way to society. The carbon price also stimulates clean technology and market innovation, fueling new, low-carbon drivers of economic growth.
"There are two main types of carbon pricing: emissions trading systems (ETS) and carbon taxes:
"The choice of the instrument will depend on national and economic circumstances. There are also more indirect ways of more accurately pricing carbon, such as through fuel taxes, the removal of fossil fuel subsidies, and regulations that may incorporate a 'social cost of carbon.' Greenhouse gas emissions can also be priced through payments for emission reductions. Private entities or sovereigns can purchase emission reductions to compensate for their own emissions (so-called offsets) or to support mitigation activities through results-based finance.
"Presently, some 40 countries and more than 20 cities, states and provinces already use carbon pricing mechanisms, with more planning to implement them in the future. Together the carbon pricing schemes now in place cover about half their emissions, which translates to about 13 percent of annual global greenhouse gas emissions." (Source: World Bank, Website, 2022) Contact: World Bank, www.worldbank.org
More Low-Carbon Energy News World Bank, Carbon Tax, Cap-and-Trade, Carbon Emissiuons, EU ETS,
All revenues from carbon trading would go towards the country's energy and climate fund (EKF) opening up new scope for government support of climate protection measures and are also used to stabilize electricity costs in Germany on a pro rata basis, UBA noted.
(Source: German Environment Agency, Xinhua, 5 Jan., 2022) Contact: German Environment Agency, Dirk Messner, Pres., +49 340 21030, www.umweltbundesamt.de
More Low-Carbon Energy News EU ETS news, Carbon Market news, Carbon Emission news,
"For the EU biofuels industry, the new proposals -- including major changes to policies on renewable energy, alternative fuels infrastructure, the Emissions Trading System (EU ETS) and energy taxation, as well as a de facto deadline for the end of the internal combustion engine -- promise a potentially bumpy road ahead as the implications become clear to policymakers as they fine-tune this legislation in the coming months: unleashing the true potential of crop-based ethanol and creating a policy environment that can spark investment in advanced ethanol are must-have components of any realistic roadmap to carbon-neutrality.
"Transport Decarbonisation -- As usual, the signals from the Commission about whether biofuels can play a major role in transport decarbonisation are mixed. On the one hand, the Fit for 55 package sets important new goals for emissions reduction and creates a solid foundation for reaching them by giving a role to renewable liquid fuels in decarbonising transport. On the other, the Commission still hesitates to make the best use of emissions-reduction tools it has today, including biofuels -- even when targets have been raised to such a degree that their contribution is essential.
"Fully enabling biofuels in the drive to carbon-neutrality is just common sense. Even under a scenario in which electric vehicles make rapid gains in market share and the sale of internal combustion engines is phased out, the EU car fleet will consist predominantly of vehicles that run fully or partly on liquid fuel in 2030 and beyond. For these petrol and hybrid cars, renewable ethanol is the most cost-effective and socially inclusive way to reduce emissions. Europe cannot afford to ignore this View on transport decarbonization are mixed important part of the equation.
"Sustainability Issues -- With the main components of the Fit for 55 package, the Commission should fully maximize the tools it has on hand for decarbonisation -- especially the Renewable Energy Directive (RED). This is the third time since 2009 the Commission has tried to get RED right. With Fit for 55, the Commission finally realizes that to succeed it needs to focus on higher GHG intensity reduction targets that drive renewable energy in transport, without multipliers that hide the EU's continued reliance on fossil fuels.
Now that sustainability issues have been settled, the EU should unleash the potential of crop-based biofuels and encourage the wider deployment of advanced biofuels. The main questions about the sustainability of biofuels were settled after RED II was adopted in 2018 by phasing out high ILUC-risk biofuels.
"We know that deforestation and outdated 'food vs fuel' arguments do not apply to EU renewable ethanol. So with this revision we should be taking the next logical step and unleashing the potential of good biofuels. Other Fit for 55 components should work in concert to promote solutions that make a realistic impact on decarbonisation.
"The CO2 for Cars Standards should include more than just one technology and recognize the benefits of renewable fuels such as ethanol to reduce the carbon-footprint of cars on the road. The Energy Taxation Directive should incentivize renewable fuels, moving away from volume-based taxation and a parallel Emissions Trading System for transport should complement, not replace, binding national targets for emissions reductions in the Effort Sharing Regulation, and avoid increased fuel prices and social discontent.
"As the European Parliament and EU Member States go to work on this legislative package from the Commission in the coming months, it will be interesting to see whether Fit for 55 can be made fit for purpose." (Source: ePURE, Sept., 2021)
Editor's note -- ePURE, the European renewable ethanol association reports its members produced 5.57 billion litres (1.45 billion gallon +-) of ethanol and 6.16 million tonnes of co-products in 2020, with a significant increase in production of ethanol for industrial use. ePURE represents 35 members,including 19 ethanol producers with around 50 plants across the EU and UK, accounting for about 85 pct of EU renewable ethanol production. Contact: ePURE, Emmanuel Desplechin, Secretary General, www.epure.org
More Low-Carbon Energy News Fit for 55, ePURE, Ethanol, Carbon Emissions, Decarbonization, EU ETS,
To complement the substantial spending on climate in the EU budget, Member States should spend the entirety of their emissions trading revenues on climate and energy-related projects. A dedicated part of the revenues from the new system for road transport and buildings should address the possible social impact on vulnerable households, micro-enterprises and transport users.
European Green Deal, www.ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en. (Source: EC, PR, 14 July, 2021)
More Low-Carbon Energy News European Green Deal,
Manufacturers, power firms and airlines operating flights inside Europe are already covered by the scheme but, under the EU's recently released plan, maritime shipping would be phased into the ETS over a three-year period.
Emissions from sea voyages within the EU, plus 50 pct of ships' emissions from international voyages starting or ending in the EU, would fall under the existing ETS, plus emissions that occur when ships are at berth in EU ports, will be included.
(Source: European Commission, 14 July, 2021)
More Low-Carbon Energy News EU ETS news, Maritime Emissions news, Carbon Emissions news,
The Shanghai exchange is expected to surpass the European Union's Emissions Trading Scheme (EU ETS), currently the largest, which seeks to cap 1.61 billion tonnes of carbon emission this year. With an average traded price of $28.28 a tonne, the scheme raised $21.8 billion last year. Some $80.7 billion have been raised on the EU ETS since trading stared in 2005, according to International Carbon Action Partnership.
China's industrial sector reportedly accounted for 28.7 pct of carbon emissions in 2019, while the transport industry made up 8.6 pct and buildings contributed 7 pct, according to the Emission Database for Global Atmospheric Research. (Source: China Center for Energy Economics Research, Xiamen University,
Xinhua, South China Morning Post, 8 July, 2021) Contact: China National Development and Reform Commission, www.en.ndrc.gov.cn; China Center for Energy Economics Research, Xiamen University, www.energyxmu.edu.cn
More Low-Carbon Energy News Shanghai Environment and Energy Exchange, EU ETS, Carbon Price, China Carbon Market, Carbon Trading, Carbon Emissions,
The long-awaited national carbon market will put a price on carbon and set emission permits and quotas for energy-intensive industries, will initially cover more than 2,200 companies in China's power sector. When finally online, China's market will overtake the EU ETS to become the world's largest, covering 12 pct of global carbon dioxide emissions, according to the Shanghai Environment and Energy Exchange.
The release noted, the biggest barrier for launching a national market lies in the establishment of a multi-dimensional and flexible trading mechanism "It is very difficult to set a unified cap on carbon emissions because CO2 emissions vary in different regions, as does demand for electricity. Some provinces' energy consumption tilts to hydropower, while others rely on coal and accordingly standards for carbon emissions set at the beginning might be relatively moderate and prudent to reduce the impact on the overall economy," according to the Shanghai Environment and Energy Exchange.
Although China's total energy consumption is expected to be controlled within 6 billion tons of standard coal equivalent by 2030, government anticipates "moderate" carbon emissions growth, and the country's energy consumption from 2020 to 2030 should peak at 800 million tons of standard coal equivalent.
(Source: China Center for Energy Economics Research at Xiamen University, China National Development and Reform Commission, Global Times, 28 June, 2021) Contact: China National Development and Reform Commission,
China Center for Energy Economics Research, Xiamen University, www.energyxmu.edu.cn
More Low-Carbon Energy News EU ETS, China National Development and Reform Commission, China Carbon Market,
The EU Emissions Trading System (U ETS), which is designed to put a cost on carbon dioxide for some of the most highly polluting industries ranging from power generation, cement production to aviation, has rallied more than 50 pct since the start of the year. (Source: Various Media, 4 Apr., 2021)
More Low-Carbon Energy News EU ETS, Carbon Price,
The EU's tax is intended to prevent "carbon leakage" -- carbon emissions that go offshore in response to carbon pricing -- rather than actually being cut. The EU tax will be imposed on carbon intensive imports and will be equivalent to what EU-based industry must pay under the European Union Emissions Trading Scheme (EU ETS).(Source: EU, European Parliment, Mar. 2020) Contact: EU, www.europa.eu
More Low-Carbon Energy News European Parliament, Border Carbon Tax, EU ETS,
The European Commission (EC) is expected to unveil its proposal for a carbon border tax in June as part of a package of climate laws aimed at cutting the EU's CO2 emissions by 55 pct by 2030. (Source: European Commissions, euractive, 10 Mar., 2021)
More Low-Carbon Energy News EU Carbon Tax, Border Carbon Tax, EUETS, Carbon Credits,
A 6.8 pct rise on Wednesday, February 4th followed a 6.5 pct jump in the previous session. The price of carbon has risen by 66 pct since early November, 2020. (Source: Various Media, FT, 3 Feb., 2021)
More Low-Carbon Energy News EU ETS, Carbon Emissions, arbon Price,
The UK ETS would immediately lower the current EU cap on greenhouse gases that businesses can emit by 5 pct and thus provide greater certainty about the decarbonisation trajectory over the long term and deliver a "robust carbon price signal" to spur business to invest in carbon abatement -- CCS.
The UK ETS would initially apply to electric power generation, aviation and other energy-intensive industries, and carbon pricing could be expanded across the economy, the paper showed.
Britain is aiming for net-zero carbon emissions by 2050 and recently increased its emissions reduction target from 57 to 68 pct for 2030. (Source: Various Media, ENDS Europe, Yahoo Finance UK, 14 Dec., 2020)
More Low-Carbon Energy News EU ETS, UK Carbon Emissions, Carbon Emissions,
The UK emissions trading scheme would be similar to the EU ETS but would apply a tighter emissions cap, higher fines than under the EU ETS and could lead to higher carbon prices -- £100 per tonne -- for the roughly 1,000 UK-based businesses currently covered by the EU ETS but will move to the new scheme, according to the UK Department for Business, Energy and Industrial Strategy (BEIS). (Source: UK Department for Business, Energy and Industrial Strategy, Fitch Ratings, Dec, 2020) Contact: BEIS, +44 0 20 7215 5000, firstname.lastname@example.org, www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy
More Low-Carbon Energy News UK BEIS, EU ETS, Emission Trading, Carbon Emissions ,
Timmermans noted that although GHG emissions are not currently falling fast enough he underlined that becoming carbon neutral is both feasible and beneficial for the EU. He called for the European Parliament (EP) to confirm the proposed 55 pct 2030-target as the EU's new Nationally Determined Contribution under the Paris Climate Agreement, and to submit this to the UNFCCC by the end of this year. The EP is expected to vote next week on the EU Climate Law, which calls for 60 pct emission reductions in 2030. Timmermans also noted the EC would come up with proposals by June 2021 to revise key EU legislation such as the EU Emissions Trading System (EU ETS), energy efficiency and renewable energy policies and strengthening CO2 standards for road vehicles to enable the EU to reach a more ambitious target.
As previously reported this past March, the EC proposed climate legislation requiring the EU to become climate-neutral by 2050 as part of the European Green Deal. This follows the December 2019 EC decision to endorse the 2050 climate-neutrality objective. On 17 September, the Commission amended its proposal to incorporate a new 2030 emissions reduction target.
(Source: European Commissions, PR, EU News Room, Oct., 2020) Contact: EU, www.europa.eu
More Low-Carbon Energy News Carbon Emissions, Carbon Neutral, European Commissions, EU ETS, Climate Change,
The European Commission (EC) proposed that reporting obligations by the EU and the International Maritime Organisation (IMO) should be aligned. While MEBs agree, they noted that the IMO has made insufficient progress in reaching a global agreement on greenhouse gas (GHG) emissions. Parliamentarians have therefore asked the Commission to examine the environmental integrity of the measures decided by the IMO as well as the targets set under the Paris Agreement.
Although the Parliament demands that ships of 5000 gross registered tons or more should be included in the ETS, many parliamentarians still feel that this is not enough and are calling for shipping companies to reduce their annual average CO2 emissions per transport service for all their ships by at least 40 pct by 2030. (Source: EP, elecdrive, 17 Sept., 2020)Contact: International Maritime Organization (IMO), Stefan Micallef, Director of Marine Environment Division, +44 (0) 20 7735 7611, www.imo.org
More Low-Carbon Energy News IMO, Maritime Emissions, Carbon Emissions, EUETS,
The new target requires individual EU member nation approval as well European Parliament approval. The commission is expected to propose legislation containing the ETS reforms by June 2021. (Source: European Commission, Arab News, 13 Sept., 2020)
More Low-Carbon Energy News EU ETS, Carbon Emissions,
The European Commission is presently reforming the rules on monitoring and reporting for the ETS the period 2021-2030. The draft regulation requires that biomass complies with the Renewable Energy Directive Sustainability criteria to be considered carbon neutral. This is a critical point to ensure that biomass comes from sustainable managed forests, that it does not lead to a decrease to the forest carbon stock, and it doesn't damage biodiversity or soil and water quality.
The current EU ETS only accounts for smokestack emissions and rates the carbon emissions of biomass burning at zero. However, EASAC said in a statement that it "should not be possible to just assume that millions of tons of carbon coming out of a power station stack are 'zero'. The ETS should be reformed to link accounting to the real effects on CO2 levels in the atmosphere. This will require calculating the 'carbon payback period' for each biomass facility and its supply chain. Regulators need to know how long it will take until the initial perverse effects of biomass on climate are overcome and net reductions in atmospheric CO2 concentrations achieved', according to the release.
"The European Commission, in its recent biodiversity strategy, has recognised that sustainable bioenergy is a win-win solution for energy generation and a key tool to achieve carbon neutrality in 2050. EU member states, as shown in their national energy and climate plans, rely on efficient and sustainable bioenergy to decarbonise their energy mix," the release added. (Source: EASAC, Website, PR, Aug., 2020) Contact: EASAC, Professor Michael Norton, Environment Programme Director, email@example.com,
+32 2550 2332 www.easac.eu
More Low-Carbon Energy News EU ETS news, Biomass news, Biomass Emissions news,
In keeping with the study findings, the CERI study proposed the following to lower emissions:
The Calgary-based Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in 1975. CERI aims to provide relevant, independent, objective economic research in energy and environmental issues to benefit business, government, academia and the public and to build bridges between scholarship and policy,combining the insights of scientific research, economic analysis, and practical experience.
(Source: Canadian Energy Research Institute, PR, Western Standard, Aug., 2020) Contact: Canadian Energy Research Institute, (403) 282-1231, firstname.lastname@example.org, www.ceri.ca
More Low-Carbon Energy News Canadian Energy Research Institute, ETS, Carbon Tax, Carbon Emissions ,
The EU carbon market is the 28-member trading bloc's flagship policy for cutting greenhouse gas emissions, which it does by forcing power plants, factories and airlines to buy permits to cover some of the pollution they emit.
The EU carbon market covered just shy of 1.6 billion tonnes of carbon dioxide equivalent (CO2e) last year. The Swiss carbon market coveredless than 5 million tonnes of CO2e from industrial facilities in 2019.
(Source: European Commission, europa.eu, Reuters, Aug., 2020)
More Low-Carbon Energy News Carbon Market, EU ETS, Carbon Trading,
"It's our job to make sure our customers are aware of these complexities. We need to use our knowledge to help them understand the impact of their shipping activities. The best way to do this is through a face-to-face dialogue. Then I can get a good understanding of what they are looking for and how it plays into their business model, and I can do my best to guide them based on the (emissions) data we can supply." -- Poul Woodall, IMO Director of Environment and Sustainability, Vice Chair, Green Ship of the Future
"Cutting (maritime shipping) emissions to net zero by 2050 in Europe is ambitious and challenging. This is why each sector needs to contribute, also shipping. The EU ETS is the right instrument for this, but we must do it properly. We want a debate with all the relevant stakeholders and an impact assessment outlining the possible consequences by June 2021. Then we can make our final decision. Shipping companies that have already heavily invested in reducing their emissions over the last decade must not be penalized. Our goal is to reduce CO2 emissions in shipping by 50 percent by 2030, compared to 2008 levels." -- Pernille Weiss, EU MEP EU Today, 12 July, 2020
Contact: International Maritime Organization (IMO), Stefan Micallef, Director of Marine Environment Division, +44 (0) 20 7735 7611, www.imo.org
More Low-Carbon Energy News Maritime Emissions, IMO, EU ETS,
International shipping represents around 13 pct of the EU greenhouse gas (GHG) emissions from the transport sector. If left undealt with, CO2 maritime emissions could increase by 50 to 250 pct by 2050, according to the EPP.
The European Commission plans to present new rules addressing the emission cuts in shipping by the end of 2020 or the beginning of 2021.
(Source: EPP, Financial Mirror, 7 July, 2020)
More Low-Carbon Energy News Shipping Emissions, EU ETS, GHGs, CO2,
The British ETS would have a £15 per tonne of CO2 fixed auction reserve price, including a cost containment mechanism to prevent price spikes.
The roughly 1,000 UK factories and plants presently covered under the EU ETS will be covered by the UK system, The
British government also noted it would consider a mutually beneficial a link between a UK ETS and the EU ETS . (Source: Financial Post, Various Media, Reuters, June, 2020)
More Low-Carbon Energy News Carbon Market, EU ETS, Carbon Trading,
Under the EU ETS, airline flights between European countries are required to purchase permits to cover some emissions from these trips. ICAO wants the EU to remove these flights from its carbon market so that CORSIA can be the only market-based measure tackling international aviation emissions.
With the UN planning a 2021 launch of CORSIA, its global scheme to help airlines offset their carbon emissions, some EU lawmakers and environmental groups want assurances that the European Commission will not remove aviation from the EU ETS.
CORSIA plans to use a system of offsetting to cap emissions from international flights at 2020 levels. From 2021, airlines would be required to buy carbon offset credits to cover any emissions above the 2020 baseline.
Critics say this would allow aviation emissions to keep rising, if airlines bought enough offset credits to cover the increase. (Source: ICAO, Pineville Voice, 2 June, 2020))Contact: ICAO, Secretary General Fang Liu, 514-954-8219, 514-954-6077 -- fax,
email@example.com, www.icao.int; CORSIA, www.icao.int/environmental-protection/CORSIA/Pages/default.aspx
More Low-Carbon Energy News Aviation Emissions, ICAO, CORSIA,
Auctions will be held on behalf of 25 EU member states plus Norway, Iceland and Liechtenstein. The auctions take place on the European Energy Exchange (EEX) platform. (Source: EUObserver, Reuters 18 May, 2020)
More Low-Carbon Energy News EU ETS,
Such a mechanism could take the form of "a carbon price floor" that could be implemented either through the EU's emissions trading scheme (EUETS)or the energy taxation directive, which is up for review as part of the European Green Deal. The paper notes that structurally low electricity prices hinder investments in new low-carbon power generation capacity needed to meet the EU's decarbonisation goals.
The new ICE Global Carbon Futures Index is made up of prices from the EU ETS, the California-Quebec Market and RGGI markets which together represent some of the largest regional economies in the world.
To date, 46 nations and more than 30 cities, states and regions have imposed a price -- carbon tax -- on carbon emissions.(Source: ICE, 23 April, 2020) Contact: ICE Global Carbon, www.theice.com
More Low-Carbon Energy News ICE Global Carbon, Carbon Market,
"All of society, from consumers, to businesses, to governments, recognised the need to accelerate global efforts to reduce greenhouse gas emissions," -- Ben van Beurden, CEO,Shell Oil, April, 2020
More Low-Carbon Energy News Carbon Market, EU ETS,
The industries affected by the proposal include: Iron ore mining; man-made fiber manufacturing; copper production; preparation and spinning of textile fibers; organic basic chemicals manufacturing; nitrogen compounds and fertilizer manufacturing; and mining of chemical and fertilizer minerals.
In a statement, the European Commission defended the The new state aid guidelines are inline with the European Green Deal which aims to cut global warming emissions, according to the EC release.
(Source: EC, EURACTIV, 16 Jan., 2020)
More Low-Carbon Energy News Carbon Emissions, EU ETS, EC, EU,
According to Politico, potential carbon tariffs were discussed at the United Nations COP25 climate conference in Madrid where it was thought inevitable that governments will turn to trade barriers in the effort to fight climate change.
The European Union currently imposes a €25 per metric ton carbon tax on oil refineries, steelmakers and paper producers and other major carbon emitters.
(Source: Vestnik, Politico, 15 Dec., 2019)
More Low-Carbon Energy News COP25, EU, EU ETS, Carbon Emissions, Carbon Tax,
Buildings are the EU’s biggest CO2 emitter. Our homes, offices and buildings are the EU’s biggest CO2emitters, as well as its single largest energy user. Decreasing and decarbonising the energy consumption to heat, cool and use buildings is crucial for the transition to a climate-neutral Europe by 2050 at the latest. Since most of the buildings that we will occupy in 2050 are already built, the main challenge is to renovate these 210 million existing buildings to make them less energy-hungry. At the current rate of renovation, it would take another century to achieve a decarbonised building stock, instead of the targeted30 years. Further inaction risks the EU missing its climate objectives by up to 400 million tonnes of CO21.Around 50 million people still live in energy poverty. Deep renovation of their homes would lower their energy bills and make their houses more comfortable and healthy. Well-insulated buildings moreover offer the flexibility to receive energy when it is available, thereby allowing the effective integration of renewables in the energy system during the entire year
.Integrating buildings in the EU ETS is complex and time-consuming. Urgent action on buildings is vital to overcome the climate and social crises facing Europe today. Integrating the building sector in the EU ETS is complex and likely to take at least several years. That is time we do not have, and which diverts attention from more effective short-term measures. The EU should instead prioritize a Green Deal for housing to unlock vast investments for building renovations, while creating local jobs and more energy-efficient and affordable housing.
What is the EU ETS? The EUETS sets a cap on the total amount of greenhouse gases that can be emitted by installations from the power, industry and aviation sectors. The cap is reduced over time so that emissions go down. Within the cap, companies receive or buy emission allowances which they can trade with each other, thereby creating a carbon price. The building sector is already covered by a cap on how much greenhouse gases can be emitted as part of the Effort Sharing Regulation; the EU’s other climate legislation targeting sectors not included in the EU ETS.
Carbon pricing does not deliver more affordable, energy-efficient homes. According to the International Energy Agency2, most of the energy efficiency potential is available at a negative cost. This means that these efficiency measures already pay for themselves, even in the absence of a carbon price. The reasons why these measures, such as energy renovation, are not taken are usually not economic in nature, but rather the result of market-barriers and -imperfections. In the case of the building sector, these barriers include split incentives between those making investments (i.e. home-owners) and those paying energy bills (i.e. tenants), the inability to come up with high upfront costs and a lack of information on renovation opportunities and financing options. Including the building sector in the EU ETS would do nothing to overcome these barriers to make buildings more energy-efficient. Even worse, the introduction of a carbon price for the heating and cooling of buildings could lead to higher energy bills for tenants or homeowners who are not able to, or cannot afford to, renovate their homes.
Governments should remain responsible for the built environment. Extending the EU ETS to buildings would mean that governments are no longer accountable for introducing measures to decarbonise the building stock under the Effort Sharing legislation. Under the Effort Sharing Regulation, each Member State has annual climate targets that it needs to meet. By integrating buildings in the EU ETS, the sector would be taken out of the Effort Sharing Regulation, putting the responsibility of climate action instead on heating fuel suppliers. The integration of the building sector in the EU ETS could lead to the dismantling or shying away from more effective EU and national energy efficiency legislation, under the pretext that this would undermine the functioning of the carbon market. This would be dangerous as the decarbonisation of the building stock requires dedicated policies beyond a carbon price. It is up to governments to put in place programmes to accelerate renovation, to introduce minimum energy performance standards for buildings and to prioritize measures to alleviate energy poverty. These actions will not happen through the EU ETS, but by policymakers taking ownership of the transition to a climate-neutral built environment.
Green Deal for housing should be a key priority for Europe. Without urgent and accelerated action to renovate up to 97% of the European building stock by 2050, it will be impossible to meet the EU’s climate objectives. Fortunately, buildings’ operational emissions can be cut by 100%, mostly by using already commercially available solutions such as insulation. Including the building sector in the EU ETS distracts from taking effective measures to overcome the main barriers hampering the renovation of the EU building stock and the alleviation of energy poverty. The EU instead needs to put in place an enabling framework to ensure that the worst energy performing buildings are phased out over time, to guarantee quality homes for people and clear a pathway to climate-neutrality. The European Green Deal presents a perfect opportunity to deliver on comfortable, affordable and energy-efficient housing. This Green Deal can help unlock 130 billion euro per year to fill the investment gap for energy-efficient buildings3. Over 2 million jobs in Europe could be created throughsuch investments in energy efficiency –in particular in the deep renovation of buildings4.
(Source:EURIMA - European Insulation Manufacturers Association, Nov., 2019) Contact: EURIMA, Femke de Jong, firstname.lastname@example.org
More Low-Carbon Energy News Energy Efficiency news, Insulation news,
More Low-Carbon Energy News Energy Efficiency, Insulation,
The Swiss-EU agreement regulates the mutual recognition of emissions rights from the two ETS systems, each with its own legal basis. From January 2020, emissions from civil aviation and fossil fuel power stations will be included in the Swiss ETS, as is currently the case in the EU.
The EU ETS operates in 31 countries -- the EU's member states, plus Iceland, Liechtenstein, and Norway. A single, EU-wide cap applies, and auctioning is the default method for allocating allowances. The Swiss ETS is also based on the cap-and-trade principle.(Source: Swiss Federal Council, SwissInfo, TaxNews.com, 15 Nov., 2019)
Contact: Swiss Federal Council, www.admin.ch/gov/en/start/federal-council.html
More Low-Carbon Energy News EU ETS, Carbon Tax, Carbon Emissions,
The Climate Action Package is an economic plan for the country's Energy and Climate Fund, which is expected to grow from €6.1 billion this year to €11.75 billion in 2023. Revenues from the European trade of CO2 allowances in energy and industry (EU ETS) are expected to raise an additional €14 billion.
The Climate Action Package is intended to put the country on track to meet its 2030 climate targets. (Source: Handelsblatt, Clean Energy Wire, Other Media, 1 Oct., 2019) Contact: German Finance Minister, Olaf Scholz, www.bundesfinanzministerium.de
More Low-Carbon Energy News EU ETS, German Carbon Tax, Carbon Tax,
The Index tracks the performance of the largest, most liquid and most accessible tradable carbon markets -- the European Union Emission Trading System (EU ETS), the California Cap-and-Trade Program, and the Regional Greenhouse Gas Initiative (RGGI). The index is calculated using OPIS data and carbon credit futures pricing in those markets.
The IHS Markit Global Carbon Index was developed in consultation with Climate Finance Partners, a specialist in climate finance.
IHS Markit is also well known for its daily OPIS Carbon Market Report, national carbon policies database and for developing industry standard methodologies for greenhouse gas accounting and disclosures. Its research and expertise on carbon policy impact, low-carbon and cleantech technologies and carbon risk management guide companies in energy, petrochemical, automotive, shipping, agriculture and other sectors critical to the global economy.
(Source: IHS Markit , 25 Sept., 2019)
Contact: IHS Markit, www.ihsmarkit.com
More Low-Carbon Energy News RGGI, EU ETS, IHS Markit Carbon Market, Carbon Credit,
The German system will be based on a trade in emissions certificates under the EU's emissions trading scheme (EU ETS).
Germany is on course to miss its 2020 target of reducing 1990 greenhouse gas emissions by 40 pct, according to the Times of Aman report.
(Source: Times of Oman, 22 Sept., 2019)
More Low-Carbon Energy News EU ETS, Carbon Tax, Climate Change, German Carbon Tax,
This tax would come into effect from the 4th of November, and would apply to all stationary installations that are currently subject to the EU ETS.
If the UK were to leave the EU without a deal, the country will also not be subject to the 28-member European Union's Emissions Trade System (EU ETS) which is key to the EU and its member nations meeting emission reduction obligations.
While UK businesses currently pay a carbon tax rate of £26 under the EU ETS, a "No Deal Brexit" carbon tax would result in a £10 cut in the carbon tax rate and would be profitable for UK industries. (Source: Herald Media, 10 Sept., 2019)
More Low-Carbon Energy News EU ETS, Carbon Tax, Carbon Emissions,
The non-EU member sources about 60 pct of its electricity from hydropower, 33 pct from nuclear and the rest from fossil fuels. Of the total, fossil fuels still make up about 63 pct of which roughly 10 pct is from aviation -- the global average aviation emissions is between 2 and 3 pct. Switzerland's domestic carbon trading scheme includes aviation emissions in the same way the EU ETS system does and the two are linked. (Source: Various Media, EURACTIV, 29 Aug., 2019)
More Low-Carbon Energy News Carbon Emissions, Carbon Neutral, Aviation Emissions, EU ETS,